Malaysian palm oil stocks may fall by 1% m-o-m to 1.93m tonnes as at end-Sept, says CIMB Research

Malaysian palm oil stocks may fall by 1% m-o-m to 1.93m tonnes as at end-Sept, says CIMB Research
-A +A

KUALA LUMPUR (Oct 4): CIMB IB Research has maintained its “Neutral” rating on the Asean agribusiness sector and said Malaysian palm oil stocks may fall by 1% month-on-month (m-o-m) to 1.93 million tonnes as at end-September.

In a note Oct 3, the research house said a survey by the CIMB Futures team reveals a 1% m-o-m decline in crude palm oil output in September.

“We project that palm oil exports likely grew by 10.2% m-o-m in September, as strong uptake from China more than offset weaker India and EU demand.

“September production was weaker due to fewer working days as three public holidays were observed during the month.

“We maintain our sector Neutral rating and regional top picks.

CIMB Research’s preferred pick in Malaysia is Sime Darby with an “Add” rating and target price RM10, in view of expectations of a share price re-rating on the back of higher commodity prices and its plans to demerge and list its plantation and property divisions.