MARKET DEVELOPMENT
Strong Palm Oil Prices Send Plantation Stocks Higher
Strong Palm Oil Prices Send Plantation Stocks Higher
28/02/2014 (The Star) - Plantation stocks were mostly higher at midday on Thursday with IOI Corp among the gainers as investor interest perked up after crude palm oil prices for third-month delivery rose above RM2,800.
Analysts expect CPO to rise to RM3,000 as production declines and stockpiles fall. The gains in plantation stocks helped the FBM KLCI stage a mild rebound after falling more than 11 points the previous day.
At 12.30pm, the FBM KLCI was up 6.33 points or 0.35% to 1,828.88. Turnover was 1.16 billion shares valued at RM806.47mil. There were 289 gainers, 417 losers and 291 stocks unchanged.
Crude palm oil for third-month futures rose to a high of RM2,807 in the morning session before easing to RM2,785, down RM25. Plantation companies also reported stronger earnings in the October-December quarter of 2013 as CPO prices recovered.
KL Kepong rose 28 sen to RM23.98, IOI Corp 14 sen to RM4.80 and Genting Plantations 12 sen to RM10.62, PPB Group 10 sen to RM16.30 and Sime Darby added three sen to RM9.13.
CIMB managed to recoup most of its losses to climb 19 sen to RM7.09. It pushed the KLCI 3.33 points. Maybank rose two sen to RM9.67.
DKSH rose 28 sen to RM7.28 after posting a strong set of results.
Uzma and Coastal Contracts, which had seen a strong run-up recently in line with the oil and gas players, fell on profit taking,
Uzma fell the most, down 40 sen to RM6.20. Coastal Contracts warrants fell 14 sen to RM1.69 and its shares shed 13 sen to RM4.32.
Property-based KSL fell 26 sen to RM2.16 and its warrants 23 sen to RM1.07 after it posted losses in the fourth quarter.
Genting Malaysia lost four sen to RM4.30 and MISC six sen to RM6.30 while Petronas Gas shed four sen to RM23.50.
Asian shares managed to recover after initial worries about rising tensions in Ukraine. Reuters said investors were seen scurrying to the safety of the dollar and US Treasuries.
Among the key regional markets,
Japan's Nikkei 225 rose 0.12% to 14,988.82;
Hong Kong's Hang Seng Index rose 0.9% to 22,638.65;
Shanghai's Composite Index rose 0.56% to 2,052.78;
Taiwan's Taiex rose 0.31% ro 8,627.35.
South Korea's Kospi rose 0.15% to 1,973.77 and
Singapore's Straits Times Index rose 0.18% to 3,093.80.
US light crude oil fell 28 cents to US$102.31 and Brent 22 cents lower at US$109.30.
Spot gold fell US$3.54 to US$1,327.10.
Analysts expect CPO to rise to RM3,000 as production declines and stockpiles fall. The gains in plantation stocks helped the FBM KLCI stage a mild rebound after falling more than 11 points the previous day.
At 12.30pm, the FBM KLCI was up 6.33 points or 0.35% to 1,828.88. Turnover was 1.16 billion shares valued at RM806.47mil. There were 289 gainers, 417 losers and 291 stocks unchanged.
Crude palm oil for third-month futures rose to a high of RM2,807 in the morning session before easing to RM2,785, down RM25. Plantation companies also reported stronger earnings in the October-December quarter of 2013 as CPO prices recovered.
KL Kepong rose 28 sen to RM23.98, IOI Corp 14 sen to RM4.80 and Genting Plantations 12 sen to RM10.62, PPB Group 10 sen to RM16.30 and Sime Darby added three sen to RM9.13.
CIMB managed to recoup most of its losses to climb 19 sen to RM7.09. It pushed the KLCI 3.33 points. Maybank rose two sen to RM9.67.
DKSH rose 28 sen to RM7.28 after posting a strong set of results.
Uzma and Coastal Contracts, which had seen a strong run-up recently in line with the oil and gas players, fell on profit taking,
Uzma fell the most, down 40 sen to RM6.20. Coastal Contracts warrants fell 14 sen to RM1.69 and its shares shed 13 sen to RM4.32.
Property-based KSL fell 26 sen to RM2.16 and its warrants 23 sen to RM1.07 after it posted losses in the fourth quarter.
Genting Malaysia lost four sen to RM4.30 and MISC six sen to RM6.30 while Petronas Gas shed four sen to RM23.50.
Asian shares managed to recover after initial worries about rising tensions in Ukraine. Reuters said investors were seen scurrying to the safety of the dollar and US Treasuries.
Among the key regional markets,
Japan's Nikkei 225 rose 0.12% to 14,988.82;
Hong Kong's Hang Seng Index rose 0.9% to 22,638.65;
Shanghai's Composite Index rose 0.56% to 2,052.78;
Taiwan's Taiex rose 0.31% ro 8,627.35.
South Korea's Kospi rose 0.15% to 1,973.77 and
Singapore's Straits Times Index rose 0.18% to 3,093.80.
US light crude oil fell 28 cents to US$102.31 and Brent 22 cents lower at US$109.30.
Spot gold fell US$3.54 to US$1,327.10.