Sime Darby Plantation, IOI Corp down after MPOB said Nov palm oil stockpile up above 3 mil tonnes

-A +A

KUALA LUMPUR (Dec 10): Sime Darby Plantation Bhd and IOI Corp Bhd shares fell after the Malaysian Palm Oil Board (MPOB) said today the country's total palm oil stockpile rose 10.45% to 3.007 million tonnes in November 2018 from the preceding month's 2.72 million tonnes.

A higher palm oil stockpile does not bode well for crude palm oil (CPO) prices.

At Bursa Malaysia today, Sime Darby Plantation shares fell 18 sen to RM4.51 at 2:54pm while IOI Corp was down 11 sen at RM4.24 at 2:55pm as CPO prices dropped.

Earlier, CPO for February 2019 was traded unchanged at RM1,998 a tonne at 2:49pm after the commodity was transacted between RM2,002 and RM1,985 so far today.

Reuters reported that Malaysian palm oil futures slipped at the midday break on Monday and were on track for a second day of declines, as traders were bearish ahead of MPOB's official data release during the market's midday break.

It was reported that inventories at end-November rose above 3 million tonnes, the highest in at least 18 years, as a steep decline in exports boosted reserves.