KUALA LUMPUR: Bursa Malaysia Bhd is in discussions with some Indonesian oil palm planters interested in listing on the stock exchange here, Bursa chief executive Datuk Yusli Mohamed Yusoff said.

“We are in discussions with some companies, but the decision to list is a difficult one to make. Our main aim is to provide evidence that Bursa provides a good platform,” he told reporters here yesterday after the launch of the FTSE- Bursa Malaysia Palm Oil Plantation Index Series.

The index series comprises three palm oil plantation indices, namely the FTSE-Bursa palm oil plantation index and FTSE-Bursa Asian palm oil plantation index denominated in ringgit and the FTSE-Bursa Asian palm oil plantation index in US dollars.

Yusli said the exchange was considering launching a futures contract for the indices, although it did not have a targeted launch date for this.

The indices will allow investors to track the performance of listed companies which derive their substantial revenues from palm oil-related activities.

“These new indices will complement and offer a platform for growth of palm oil plantation-related capital market products, such as exchange-traded funds and other structured products, which can span across equities, derivatives and commodities markets,” Yusli said.

FTSE Group Asia Pacific managing director Paul Hoff said: “We are seeing evidence of increased interest in agricultural/commodity investment as investors look for niche opportunities. We are pleased to be working with Bursa Malaysia again, this time to develop the FTSE Bursa Malaysia Palm Oil Plantation Index Series to capture this unique sector.”

Yusli said the three-year back cast values of the indices indicated they had outperformed the KLCI by more than 39%.

“This shows that our palm oil-related products already have a good following by investors. As such, the move to introduce these palm oil-related indices complements our strong footing in the palm oil commodities-related sector.

“This move strengthens our CPO futures market as it bridges between the cash and derivatives markets for hedging and arbitraging opportunities,” he said.

Yusli also said CPO futures contracts on Bursa Malaysia had recorded an all-time high last month of 442,220 contracts with a daily average of 20,101 contracts traded, while 1.27 million contracts were traded from January to April this year.

On the outlook for CPO prices, he said this was best left to the experts.