Malaysian palm oil stocks rise after Indonesia widened export ban
28/04/2022 (The Edge Markets), Kuala Lumpur – Malaysian palm oil stocks rose on optimism its producers would gain from Indonesia’s decision to widen its export ban to include all palm oil products from the country.
IOI Corp Bhd added as much as 2.4%, while Sime Darby Plantation Bhd rose 1.9%, Kuala Lumpur Kepong Bhd (KLK) advanced as much as 3.4% and FGV Holdings Bhd was up 2%.
Malaysia is the second largest producer of palm oil after Indonesia.
Indonesia’s export ban on the commodity is expected to benefit Malaysian palm oil planters, according to analysts.
“We believe the winners of this move are pure Malaysian players as well as those with downstream capacities in Malaysia,” Hoe Lee Leng, an analyst at RHB Research, said in a note to clients on Thursday (April 28).
She maintained her "neutral" rating of the agriculture sector, with a "buy" recommendation for Sarawak Oil Palms Bhd and Ta Ann Holdings Bhd.
Sarawak Oil Palms rose as much as 5.8%, while Ta Ann jumped 5.7%.