15/10/2012 (The Star) - CIMB Equities Research retained its Trading Buy on the sector given the potential recovery of crude palm oil (CPO) price by year-end.

It said on Monday Malaysia's plan to cut CPO export tax to 4.5-8.5% and scrap its tax- free CPO quota effective Jan 1, 2013 is not a surprise.

"This is negative for Malaysian planters, but good news for Malaysian refiners. This could help support near-term local CPO price if there is a rush to export the remaining quota of 2.5 million tonnes of CPO tax free.

"We estimate that the new tax could cut earnings for pure Malaysian planters by up to 12% for FY13. We retain our Trading Buy on the sector given the potential recovery of CPO price by year-end. Our top picks are Astra Agro, Indofood Agri, and Sime Darby," said CIMB Research