BULLISH export data for Malaysia's crude palm oil (CPO) failed to attractinvestors' interest in plantation counters yesterday as players were takenaback by the sharp decline in CPO prices in both spot and futures markets,analysts say.

The country's physical CPO price for August South fell RM45 to RM1,230 atonne at Wednesday's close, while the benchmark October contract for CPOfutures decreased RM52 to RM1,211 a tonne.

These were despite cargo surveyor Societe Generale de Surveillance'sannouncement yesterday that Malaysia's CPO exports for August 1 to 15 haveincreased to 455,757 tonnes from 411,292 tonnes in the same period inJuly.

A plantation analyst said the data failed to push the CPO price upwards asthe increase in the export figures was viewed as relatively small by many.

"As for CPO futures, a lot of players had liquidated their positionsamidst concerns that the CBOT (Chicago Board of Trade) might extend itslosses on Wednesday," he said.

The CBOT soya product futures ended lower on Tuesday in line with thesofter soyabean market, due to an improving weather outlook for the cropin the US.

On the Kuala Lumpur Stock Exchange (KLSE) yesterday, the volume ofplantation stocks traded declined to 5.967 million shares from 9.280million shares a day earlier.

The 39-member KLSE Plantation Index rose marginally by 1.60 points to endat 1588.68, with 15 counters up, 10 down and 14 unchanged.

The leading mover among plantation stocks yesterday was Chin TeckPlantations which closed 16 sen higher at RM4.84, albeit on a thin volumeof 29,000 shares.

Other gainers included Kuala Sidim Bhd which was up 10 sen to RM4.00, PPBOil Palms 2 sen to RM2.10 and Asiatic Development 1 sen to RM1.21.

Among the big-caps, IOI Corp eased 2 sen to RM3.46, while Golden Hope andGuthrie were both unchanged at RM3.62 and RM2.11 each, respectively.

16 August 2001Business Times