KUALA LUMPUR: KL Kepong and IOI Corp led blue chips higher in early trade on May 21 with analysts raising their crude palm oil (CPO) forecast in the short term.

Companies with interest in the Iskandar Malaysia were actively traded, including Tebrau Teguh, MRCB and UEM Land.

At 10.02am, the KL Composite Index had risen 6.27 points to 1,048.9. It was at 1,049.99, just a hair breath away from the key 1,050 level, earlier before a mild pullback.

Turnover was 354.87 million shares valued at RM320.58 million. There were 265 gainers, 79 losers and 165 stocks unchanged.

Among key Asian markets, Hong Kong’s Hang Seng Index opened 1.1% down at 17,291.44, the Nikkei 225 fell 1.17% to 9,235.15 and Singapore’s Straits Times Index declining 0.53% to 2,257.12. Shanghai’s Composite Index rose 0.23% to2,657.51.

Light crude oil fell 48 cents to US$61.56 per barrel.

Maybank Investment Research raised its CPO price assumption to RM2,000 per tonne (from RM1,600) on the current high price of RM2,800 and year-to-date RM2,178 average.

“We do not foresee CPO prices staying at current levels beyond 2Q due to rising 2H production and slowing exports. The present CPO price is 81%-123% above its long term historical price in US dollar and Ringgit equivalents. EPS forecasts are upgraded by up to more than 100% but company valuations remain stretched. Maintain Underweight,” it said.

KL Kepong rose 40 sen to RM12.40, United Plantations, Chin Tek and Kulim-WB rising 20 sen each to RM11.60, RM6.80 and RM3.76 respectively while Boustead added 18 sen to RM3.92, Far East 15 sen to RM5.95. IOI Corp 12 sen to RM4.76 and IJM Plantations advanced 11 sen to RM2.70.

Talam was the most active with 24.8 million shares done, rising one sen to 11 sen. Axiata added nine sen to RM2.55.

TebrauTeguh rose two sen to 70 sen, MRCB two sen also to RM1.29 and UEM Land seven sen to RM1.44.

The decliners were Mamee, down 16 sen to RM2.32, UMW 15 sen to RM5.65 while YTL and Tenaga lost five sen each to RM7.05 and RM7.50.