Thursday 28 Mar 2024
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KUALA LUMPUR (April 10): Shares of several plantation counters fell in early trades today, weighed down by lower crude palm oil (CPO) price and possible higher production.

At 12.30pm, shares of Kuala Lumpur Kepong Bhd declined 6 sen or 0.24% to RM24.62, with 14,700 shares traded.

IOI Corp Bhd fell 4 sen or 0.86% to RM4.59, with 586,000 shares changing hands.

Meanwhile, shares of Boustead Plantations Bhd were down 2 sen or 1.2% to RM1.65, with a volume of 1.1 million shares.

Sime Darby Bhd dropped 2 sen or 0.21% to RM9.30, with 571,400 shares traded.

Remisier Loo Boon Hoe said plantation counters were mainly weighed down by lower CPO price.

"CPO price has come down from its high recently. Production of fresh fruit bunches is expected to improve too," he told theedgemarkets.com when contacted.

Another dealer Soh Kock Huat told theedgemarkets.com that second quarter financial results of plantation companies may not be as good as the first quarter.

Reuters reported that Malaysian palm oil futures closed down on Friday, the sharpest drop in a week, after tracking rival soyoil, which fell on concerns of ample global soybean supplies.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange finished 1.7% lower at RM2,660 (US$599.98) a tonne, the biggest decline since March 30 and third losing session out of four.

Palm oil fell ahead of Monday's official data on production, exports and stocks from the Malaysian Palm Oil Board.

Palm oil prices have slipped in recent weeks on expectations of rising output and tracking other edible oils lower.

Analysts polled by Reuters expected palm oil output in the world's No.2 producer, Malaysia, to show a 10.4% rise to 1.39 million tonnes in March, which would be the first month-on-month climb in about five months.

March inventory levels likely rose for the first time in three months to 1.46 million tonnes, according to the poll's median forecast. Exports were seen rising 7% to 1.18 million tonnes.

 

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