Singapore Stock Market News

Regional Plantation - Recovery Play

StockFanatic
Publish date: Wed, 05 Nov 2014, 10:04 AM
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Crude palm oil (CPO) prices are set to recover at a more gradual pace vs our earlier expectation of a stronger price recovery. We have trimmed our CPO price forecasts for 2014, 2015 and 2016 to RM2,400, RM2,525 and RM2,600/tonne respectively. However, we see trading opportunities emerging after the heavy selldown in Oct 14 and expect CPO prices to recover from the current RM2,300/tonne to hit RM2,500-2,600/tonne. Our picks are First Resources, Bumitama Agri and Sarawak Oil Palms. Maintain MARKET WEIGHT.
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