29/08/2012 (Bernama) - Alliance Research has maintained its "trading buy" call on Genting Plantation Bhd (GENP) and expects the group's second half results to be more promising.

The research house expects crude palm oil prices to trend up in the near term on the back of supply concerns.

"GENP turned in a weak first half 2012 on the back of a 13 per cent decline in fresh fruits bunch production, coupled with lower crude palm oil average selling price of RM3,193 per metric tonne," it said.

It said the decline in production was due to a lagged effect from the 2010 El Nino which has also impacted first quarter of 2012.

Alliance said GENP noted a sharp pick up in production starting July and expected that a full year production may only be mildly negative year-on-year. Following the change in estimates, Alliance has adjusted its target price to RM10.45 from RM10.64 previously.