KUALA LUMPUR (Feb 13): Investors may today take cue from Malaysia's lower palm oil inventory in January 2018 compared to a month earlier as they evaluate the data's impact on crude palm oil (CPO) prices and plantation companies' shares.

Investors are expected to focus on FBM KLCI-linked plantation companies' share price movements, which will influence the broader market. Yesterday, the KLCI rose 10.35 points or 0.57% to close at 1,830.17. Bursa Malaysia's plantation index climbed 15.74 points or 0.2% to 7,961.77.

According to the Malaysian Palm Oil Board's (MPOB) statement yesterday, Malaysia's palm oil inventory declined 6.75% to 2.55 million tonnes in January 2018 from 2.73 million tonnes in December 2017 as CPO production fell. The inventory includes CPO and processed palm oil.

CPO production declined 13.49% to 1.59 million tonnes from 1.83 million tonnes, MPOB said. Palm oil exports however, rose 6.01% to 1.51 million tonnes from 1.43 million tonnes, according to MPOB.

Bernama reported that CPO futures contracts on Bursa Malaysia Derivatives closed higher yesterday on the back of lower production and inventories, as well as better exports. At the close, February 2018 increased RM55 to RM2,550 per tonne, March 2018 gained RM31 to RM2,550 per tonne, April 2018 appreciated RM29 to RM2,543 per tonne, and May 2018 improved RM28 to RM2,542 per tonne.