The rally of the CPO prices for last few months has lifted share prices of major plantation counter such as KLK and IOI but not small cap plantation counters like IJM Plant, KimLoong, Kulim as well as many others. It is not because of fundamental flaw but simply because they are not in investor’s radar screen.
A plantation player expects CPO price will be firm up to July. Bernard Dompok, the Plantation Minister, said the low palm stock at 1.2 million tones would keep CPO price steady this year.
Analyst says there is no reason why those small holders which are more established with more matured hectarage should perform poorly. (mailed to members at 7.00pm 10/5)
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