KUALA LUMPUR: Crude palm oil third-month futures fell as much as RM54 to RM3,306 at the midday break on Tuesday, April 26.
This was the lowest since April 19 when the CPO futures was trading at RM3,249.87.
UOB Kay Hian regional equities research said it was maintaining an Underweight recommendation on the PLANTATION [] section following the recent CPO price weakness (-10.5% year-to-date and -16.3% from peak in February 2011) as it foresees more downside risks to prices as production started to pick up in March 2011.
'The high CPO production is likely to sustain in 2Q11 and to peak in 4Q11.'' We recommend investors to continue reducing positions in plantations, especially the pure upstream players,' it said.
UOB Kay Hian said it was maintain its earnings forecasts and 2011 and 2012 CPO average selling price assumptions of RM2,900/tonne (US$980/tonne) and RM2,700/tonne (US$900/tonne) respectively.
This was the lowest since April 19 when the CPO futures was trading at RM3,249.87.
UOB Kay Hian regional equities research said it was maintaining an Underweight recommendation on the PLANTATION [] section following the recent CPO price weakness (-10.5% year-to-date and -16.3% from peak in February 2011) as it foresees more downside risks to prices as production started to pick up in March 2011.
'The high CPO production is likely to sustain in 2Q11 and to peak in 4Q11.'' We recommend investors to continue reducing positions in plantations, especially the pure upstream players,' it said.
UOB Kay Hian said it was maintain its earnings forecasts and 2011 and 2012 CPO average selling price assumptions of RM2,900/tonne (US$980/tonne) and RM2,700/tonne (US$900/tonne) respectively.
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