Singapore Stock Market News

Plantations - 3 companies cleared by RSPO

StockFanatic
Publish date: Tue, 09 Jul 2013, 12:02 PM
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Following an analysis of the maps submitted, RSPO has found that three companies - Sime Darby, Golden Agri and KLK - have correctly managed a few hotspots that were present in a minority of their estates. These hotspots were extinguished within 24 hours.

We view this positively as it will help exonerate the companies from the charge of deliberately setting fire to their estates, leading to the haze situation. This will also help restore their reputations as sustainable palm oil producers. However, our Neutral view on the sector is intact due to the lack of near-term re-rating catalysts. We also keep First Resources, Wilmar and IOI Corp as our preferred picks.
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