MARKET DEVELOPMENT
Golden Agri Headed for Worst Day in A Month; S'pore Stocks Flat
Golden Agri Headed for Worst Day in A Month; S'pore Stocks Flat
04/12/2013 (Reuters) - Palm oil firm Golden Agri-Resources Ltd fell more than 2 percent on Tuesday, headed for its biggest daily loss in nearly a month due to lower palm oil prices, and weighed on Singapore's benchmark stock index, which was little changed.
"The CPO prices are weaker today, which could have driven Golden Agri share price lower," said Ivy Ng, an analyst at CIMB, adding that Golden Agri's share price has the highest correlation with palm oil prices due to its large free float.
The benchmark crude palm oil futures contract on Bursa Malaysia Derivatives Exchange eased to a one-week low.
Golden Agri shares fell as much as 2.6 percent to S$0.57, down 12 percent so far in 2013, in its third year in the red.
CIMB set a "neutral" rating and a target price of S$0.60, but added the stock is fairly valued and in line with historical price-earnings ratio. The forward core P/E ratio stands at 22.13.
CIMB favours First Resources Ltd, which trades at 12 times of its earnings, for its young estates and good management. First Resources shares rose more than 2 percent, and have climbed 13 percent so far this year.
The benchmark Straits Times Index was little changed at 3,189.62 points by 0620 GMT, while the MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.6 percent.
In its 2013 year book, CIMB listed DBS Group Holdings Ltd , Keppel Corporation Ltd, Wilmar International Ltd and Global Logistic Properties Ltd , alongside First Resources, as its top five big-cap buys.
Among small-cap companies, Ezion Holding Ltd gained 56 percent this year, earning the Singapore-based offshore logistics and services company a spot in CIMB's top five small-cap picks.
"The CPO prices are weaker today, which could have driven Golden Agri share price lower," said Ivy Ng, an analyst at CIMB, adding that Golden Agri's share price has the highest correlation with palm oil prices due to its large free float.
The benchmark crude palm oil futures contract on Bursa Malaysia Derivatives Exchange eased to a one-week low.
Golden Agri shares fell as much as 2.6 percent to S$0.57, down 12 percent so far in 2013, in its third year in the red.
CIMB set a "neutral" rating and a target price of S$0.60, but added the stock is fairly valued and in line with historical price-earnings ratio. The forward core P/E ratio stands at 22.13.
CIMB favours First Resources Ltd, which trades at 12 times of its earnings, for its young estates and good management. First Resources shares rose more than 2 percent, and have climbed 13 percent so far this year.
The benchmark Straits Times Index was little changed at 3,189.62 points by 0620 GMT, while the MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.6 percent.
In its 2013 year book, CIMB listed DBS Group Holdings Ltd , Keppel Corporation Ltd, Wilmar International Ltd and Global Logistic Properties Ltd , alongside First Resources, as its top five big-cap buys.
Among small-cap companies, Ezion Holding Ltd gained 56 percent this year, earning the Singapore-based offshore logistics and services company a spot in CIMB's top five small-cap picks.