Regional Plantation: Share Prices Lagging CPO Prices
Share prices of most plantation stocks have not performed in line with CPO prices, possibly due to the anticipated strong recovery in FFB output likely to come from Indonesia. It could also be due to the market’s cynicism that CPO prices would remain at current high levels. We continue to advocate a trading strategy for the plantation sector – buying liquid high beta stocks capable of surprising on the upside in terms of FFB output. NEUTRAL.