Singapore Stock Market News

Regional Plantation - Getting Ready To Reinvest

StockFanatic
Publish date: Tue, 28 Oct 2014, 10:27 AM
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Feedback from a recent marketing trip indicates that investors are less bearish on plantation stocks and are getting ready to increase exposure in this sector.

Key factors leading to the change are:
a) heavy selldown in plantation stocks, especially in mid-Oct 14;

b) CPO price is relatively stable despite a sharp decline in crude oil prices, indicating that CPO price is close to its fair value; and

c) supplies might be less than expected.

We recommend accumulating growth stocks. Maintain MARKET WEIGHT.
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