Singapore Stock Market News

Plantations - Mixed signals at POTS 2012

StockFanatic
Publish date: Wed, 17 Oct 2012, 10:19 AM
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The main takeaways from POTS were the speakers' bearish views on CPO prices in the near term due to the high stockpile, and their more positive outlook for the medium term due to weaker oilseed supplies. These are broadly in line with our assessment of the situation.

We view the current spot CPO price of RM2,267 as attractive enough to encourage demand to absorb the seasonal high production that will help pave the way for a recovery in 2013. We retain our Trading Buy call on the sector given the potential CPO price recovery by year-end. Our top picks are Astra Agro, Indofood Agri, and Sime Darby.
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