MARKET DEVELOPMENT
STOCKS NEWS INDONESIA-Palm Oil Producers\' Shares Drop on Lower Q1 Results
STOCKS NEWS INDONESIA-Palm Oil Producers\' Shares Drop on Lower Q1 Results
29/04/2013 (Reuters) - Shares of Indonesian palm oil producers dropped as much as 0.4 percent on Monday following below-expectation quarterly results.
London Sumatra's shares dropped 2.29 percent to 1,690 rupiah after the company said its first quarter net profit slumped 66.4 percent to 100.52 billion rupiah compared with the previous year.
Shares in Salim Ivomas slid 1.09 percent to 910 rupiah after its first-quarter profit dropped 76.1 percent to 99.8 billion rupiah compared with the same period last year.
"Even though both companies' sales volume rose more than 15 percent in the first quarter, their sales values dropped due to weakening crude palm oil (CPO) prices, which led to lower profits," Arandi Nugraha, a plantation analyst at Jakarta-based Batavia Prosperindo Sekuritas, told Reuters.
The broader Jakarta Composite Index rose 0.18 percent.
London Sumatra's shares dropped 2.29 percent to 1,690 rupiah after the company said its first quarter net profit slumped 66.4 percent to 100.52 billion rupiah compared with the previous year.
Shares in Salim Ivomas slid 1.09 percent to 910 rupiah after its first-quarter profit dropped 76.1 percent to 99.8 billion rupiah compared with the same period last year.
"Even though both companies' sales volume rose more than 15 percent in the first quarter, their sales values dropped due to weakening crude palm oil (CPO) prices, which led to lower profits," Arandi Nugraha, a plantation analyst at Jakarta-based Batavia Prosperindo Sekuritas, told Reuters.
The broader Jakarta Composite Index rose 0.18 percent.