MARKET DEVELOPMENT
IOI Corp at Highest Since 2008
IOI Corp at Highest Since 2008
14/05/2014 (The Star) - Shares of IOI Corporation rose to the highest since June 2008 on some fund buying of the plantation heavyweight which is expected to report stronger earnings in the first quarter ended March 31, 2014.
At 10.27am, it was up 10 sen to RM5.15. Turnover was 2.35 million shares valued at prices ranging from RM5.10 to RM5.17.
The FBM KLCI was up 8.33 points to 1,874.41. Turnover was 584.78 million shares valued at RM497.53mil. There were 367 gainers, 174 losers and 284 counters unchanged.
Affin Investment Research is maintained its crude palm oil (CPO) average selling price forecast of RM2,700 a tonne for 2014 and RM2,850 for 2015-16, the latter higher forecast to be underpinned by higher edible and non-edible demand (including for biodiesel production in Malaysia and Indonesia) and declining world stocks-usage ratio.
"We also maintain our Overweight rating for the sector. Key downside risks include: (i) higher-than-expected soybean and palm oil production; (ii) weaker-than-expected recovery in the global economy cutting demand and prices of vegetable and crude oils; and (iii) slow implementation of biodiesel mandates in Indonesia and Malaysia," it said.
At 10.27am, it was up 10 sen to RM5.15. Turnover was 2.35 million shares valued at prices ranging from RM5.10 to RM5.17.
The FBM KLCI was up 8.33 points to 1,874.41. Turnover was 584.78 million shares valued at RM497.53mil. There were 367 gainers, 174 losers and 284 counters unchanged.
Affin Investment Research is maintained its crude palm oil (CPO) average selling price forecast of RM2,700 a tonne for 2014 and RM2,850 for 2015-16, the latter higher forecast to be underpinned by higher edible and non-edible demand (including for biodiesel production in Malaysia and Indonesia) and declining world stocks-usage ratio.
"We also maintain our Overweight rating for the sector. Key downside risks include: (i) higher-than-expected soybean and palm oil production; (ii) weaker-than-expected recovery in the global economy cutting demand and prices of vegetable and crude oils; and (iii) slow implementation of biodiesel mandates in Indonesia and Malaysia," it said.