Date 05/05/2021
News Provider Siti Safura Masiron
News Source www.theedgemarkets.com
Headlines Plantation counters see higher interest following rise in CPO prices
 

04.05.2021 (www.theedgemarkets.com) - KUALA LUMPUR (May 4): Plantation counters on Bursa Malaysia demonstrated greater interest from investors this morning after crude palm oil (CPO) prices rallied even further.

As of 9.30am, shares in Gopeng Bhd, Sarawak Oil Palms Bhd (SOP), United Malacca Bhd, Kluang Rubber Company (Malaya) Bhd, Genting Plantations Bhd and Sarawak Plantation Bhd were among top value gainers on the local bourse.

Leading the charge was Gopeng and SOP. At the time of writing, these two counters were the second and sixth top value gainers on the local bourse respectively.

Gopeng had risen 35.33% or 29.5 sen to a one-month high of RM1.13, valuing it at RM303.96 million.

Meanwhile, SOP was 2.61% or 10 sen higher at RM3.93, which translated into a market capitalisation of RM2.25 billion.

Meanwhile, Kluang Rubber, United Malacca and Genting Plantations were the 10th, 11th and 12th top value gainers respectively.

Kluang Rubber was 2.7% or 10 sen higher at RM3.80. United Malacca was 1.96% or 10 sen higher at RM5.20 per share, whereas Genting Plantations was 1.02% or nine sen higher at RM8.90 per share.

Sarawak Plantation was 3.33% or eight sen higher at RM2.48, making it the 19th top gainer so far today.

Better sentiment also benefits those with plantation arms

The better sentiment on the sector was also extended to companies with plantation arms.

Property company MKH Bhd, which has plantations in Kalimantan, Indonesia, was 6.52% or nine sen higher at RM1.47, while diversified PPB Group Bhd with interest in Singapore-listed Wilmar International Ltd was 0.43% or eight sen higher at RM18.58.

Even among the top active list, TDM Bhd and Rimbunan Sawit Bhd were the second and fifth most actively traded counters on the local bourse, with a trading volume of 64.77 million shares and 33.57 million shares respectively.

Meanwhile, the FBM Asian Palm Oil (RM), FBM Palm Oil Plantation-NC and Plantation indices were among the best performing on the local bourse this morning.

According to the Malaysian Palm Oil Board (MPOB), CPO prices stood at RM4,497 a tonne yesterday.

In a note to clients, CGS-CIMB Futures Sdn Bhd noted that palm oil jumped the most in 11 months after soy oil powered to fresh highs since 2008 and traders weighed higher-than-expected supply in Malaysia.

“Futures in Kuala Lumpur closed 4.8% higher after posting an intraday rise of as much as 5.9%. In Chicago, soybean oil soared to the highest since July 2008 and soybeans extended gains amid a renewed surge in crop commodities. Palm rallied in unison with the surge in Chicago soy prices,” it said.

https://www.theedgemarkets.com/article/plantation-counters-see-higher-interest-following-rise-cpo-prices