Malaysian plantation stocks rise as palm oil demand stays strong, crude oil regains vigour
13/04/2026 (The Edge Malaysia), Kuala Lumpur - Malaysian plantation stocks outperformed on Monday, benefitting from strong palm oil demand and a rally in crude oil amid renewed US-Iran tensions.
Strong exports in March at a time of rising palm oil prices suggests stockpiling in the months ahead amid uncertainties from the Middle East geopolitical conflict, according to research houses including Kenanga Investment Bank and TA Securities. Supply, meanwhile, is tightening.
Buyers may “stock up for another quarter or two” regardless of a ceasefire in the Middle East due to rising food security concerns, Kenanga said in a note.
The Bursa Malaysia Plantation Index, which tracks 39 stocks in the sector, rose as much as 1.2%. SD Guthrie Bhd (KL:SDG), the world’s largest palm oil producer by acreage, added nearly 19 sen or over 3% to RM6.18. Palm oil futures rose as well to around RM4,594 on Bursa Malaysia Derivatives.
Prices of the edible oil used in everything from lipstick to soap have gained 13% this year, thanks to a push for a higher blend of palm-based methyl ester in biodiesel. Malaysia is expanding the programme in stages, while Thailand has begun curbing palm oil exports to meet domestic biodiesel demand.
“Collectively, these factors may provide a potential structural floor to prices, particularly in the near term as inventory levels continue to normalise and demand remains relatively resilient,” BIMB Securities said.
Data out last week showed inventory in Malaysia, the world’s largest palm oil producer after Indonesia, falling for the third straight month in March as exports surged 41% from pre-festive demand.
However, “we believe further inventory drawdown to be limited”, said Hong Leong Investment Bank (HLIB), noting seasonal recovery in production and absence of festive-driven restocking.
There is also a risk that the elevated prices may “trigger demand destruction”, particularly from price-sensitive markets such as India and Pakistan, the house cautioned.
Kenanga, BIMB Securities, and HLIB are all 'overweight' on the Malaysian plantation sector.