30/07/2013 (Reuters) - Bahana Securities cut its rating on the plantation sector to "underweight from "neutral", citing continued negative developments within the industry.

"While benefiting from a weaker Rupiah, crude palm oil (CPO) companies will see depressed 2013-15 earnings on lower CPO price and higher labor costs," Bahana said in a note on Monday.

Bahana also cut its 2013-15 CPO price assumptions by 12 percent to 20 percent, with an average 16 percent downside potential on revised down earnings and lofty valuations due to an unsupportive CPO market. The research house has a "reduce" rating on most of the plantation companies in its coverage.

Bahana's top sell stocks are Sampoerna Agro, Salim Ivomas Pratama and London Sumatera Plantation .

Indonesian plantation shares slid 1.42 percent, underperforming the broader index, which was down 1.32 percent.