RHB Research is maintaining its Neutral recommendation on the plantation sector with an Outperform on CBIP, Market Perform on Sime Darby.
In a research note issued on April 6, the research house also said it had an Underperform on IOI Corp, KL Kepong, Asiatic and IJM Plantations.
“Although our fundamental view of the plantation sector remains a Neutral, we believe that in this volatile market, trading is the key strategy for the highly weighted plantation sector,” it said.
RHB Research said it believed that of late, the volatilities in crude oil prices as well as other soft commodity prices are not necessarily all attributable to fundamental industry changes or developments.
It added financial demand had once again started to play a role in price movements of commodities, as risk appetite increases and builds up momentum.
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