Plantation stocks recover to lead KLCI higher

Palm Oil HQ Posted by Palm Oil HQ 35 days ago
Source: http://www.theedgedaily.com
Added 35 days ago - KUALA LUMPUR: Plantation stocks, finding support from investors, recovered from the selldown in the last two days to lead the Kuala Lumpur Composite Index (KLCI) higher yesterday.

Plantation blue chips, such as Kuala Lumpur Kepong Bhd (KLK) and Sime Darby Bhd, rebounded after both stocks plunged to new lows on Monday’s trade. At the close yesterday, KLK gained 20 sen to RM13.70 with 2.2 million shares traded, while Sime Darby added 25 sen to RM7.85 with 7.7 million shares done.

IOI Corporation Bhd was five sen higher at RM5.55, Asiatic Development Bhd rose 10 sen to RM6.20 and IJM Plantation Bhd climbed nine sen to RM2.94. Hap Seng Plantations Holdings Bhd edged up three sen to RM2.85, while United Plantation Bhd was unchanged at RM11.60.

However, analysts remained cautious on the sector in the near term. “We cannot say for sure how long the uptrend would continue. The outlook for the plantation sector would remain obscure, at least for the next two months,” an analyst told The Edge Financial Daily.

He said that there would be “no strong factor to hold crude palm oil (CPO) prices for now”, but in the longer term, he maintained an overweight stance on the plantation sector.

Palm oil for the benchmark October contract on Bursa Malaysia Derivatives closed RM8 lower at RM3,252 per tonne while August and September deliveries each gained RM10 and RM14 to RM3,255 and RM3,259 a tonne, respectively.

According to CLSA Research, the medium-term outlook for edible oils and CPO was positive as edible oil reserves would remain tight.

“The corn usage for fuel in the US is dramatically reducing corn usage for food and cutting into hectarage allocated for soybeans. This would have supply-demand implications.

“As corn and soy inventories hit record lows over the next 12 months, this is likely to lead to higher edible oil prices,” it said.

In a likely scenario where soy and corn inventories would tighten due to inadequate supply to meet growing demand, CLSA said CPO would be attractive as a substitute to meet growing consumption for edible oils.

Meanwhile, Reuters reported Plantation Industries and Commodities Minister Datuk Peter Chin as saying that there would be no windfall tax cut on oil palm growers this year.

“I do not see it happening this year, except if there is a real dive in palm oil prices because palm oil prices would have to fall below RM2,000, (at a level) that is when the government actually start charging the windfall tax. So it cannot happen,” Chin said.

The government introduced a windfall tax on CPO sales above RM2,000 a tonne in June, with a 15% tax imposed on planters in Peninsular Malaysia and 7.5% for plantations in Sabah and Sarawak.

Full Article from Source
Forward this article to a friend  

Latest Crude Palm Oil (CPO) Futures Prices (Hourly)

The Chart and table below show the latest Crude Palm Oil (CPO) Futures prices, as traded on the Bursa Malaysia Derivitives Exchange.


First trading session: Weekdays 10:30 a.m. to 12:30 p.m
Second trading session: Weekdays 3:00 p.m. to 6:00 p.m
Current Malaysian local time: 12:14:33 PM Thu, August 28th 2008

Palm Oil HQ Crude Palm Oil Futures Prices
1 USD = 3.3818 MYR Updated: 12:00:03 PM Thu, August 28th 2008
Month Open High Low Last Sett.p Change Volume O.P
Sep 20082,4372,4412,4372,4412,480-39131,466
Oct 20082,4622,4802,4622,4802,501-219512,503
Nov 20082,4622,4882,4522,4882,502-1467115,251
Dec 20082,4662,4902,4632,4902,504-14868,848
Feb 2009----2,518--572
Mar 2009-2,4652,520-2,189--0
0.00---2,50002,668-0
Jul 2009----2,511--2,374
Sep 2009---2,5510984-0
Nov 2009----2,507--424
Jan 2010----2,505--886
Mar 2010----2,503--219
May 2010----2,503--1,114
Jul 2010----2,503--36

Historical Crude Palm Oil (CPO) Futures Prices

Average Historical Spot Settlement Price for Crude Palm Oil on the Bursa Malaysia Derivitives Exchange.

Palm Oil HQ Historical Crude Palm Oil Futures Prices