Singapore Stock Market News

Plantation Day - biodiesel theme

StockFanatic
Publish date: Fri, 17 Jan 2014, 10:37 AM
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We hosted an Indonesia Plantation Day with a focus on the country's biodiesel efforts. Overall, we are more optimistic on the biodiesel programme as we gather that the biodiesel tender is not the only avenue Pertamina is pursuing to secure biodiesel to meet the higher mandate, contrary to some expectations.

The government appears ready to overcome any challenges to ensure the mandate is met. We expect the second biodiesel tender results by Pertamina to show a favourable take-up rate as the pricing mechanism for biodiesel has improved. However, our Neutral stance on the sector is intact. Our top picks are First Resources, Wilmar, AALI, LSIP and Ta Ann Holdings.
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