For exposure to the plantation sector, the research house likes pure-play planters such as Genting Plantations Bhd (16 times FY10 PE, net cash of RM0.24/share) and United Malacca Bhd (17 times FY10E PE, net cash of RM2.52/share, implied CPO of RM1,900 per tonne).
HLG Research said the benchmark third month CPO futures rose to its highest level in two weeks on Monday.
CPO futures were down yesterday, with the most active January contract closing RM17 lower at RM2,180 per tonne, compared to the day before. The fall is said to follow crude oil, which traded sideways after reaching a one-year high above US$80 (RM268.80) per barrel.
Palm oil exports increased 1.8% in the first 20 days of October to 812,095 tonnes from 797,929 tonnes over the same period in September, according to independent cargo surveyor Intertek.
This article appeared in The Edge Financial Daily, October 21, 2009.