Hoe and Syahril believe the decline was mainly due to external circumstances, dragged down by the banking crises in the US, US dollar weakness as well as global commodity price weakness. This includes that of crude oil, soybean oil (SBO) and rapeseed oil.
RHB Group Research analysts Hoe Lee Leng and Syahril Hanafiah have maintained their “neutral” rating on the plantation sector amid recent crude palm oil (CPO) prices decline.
In their Apr 11 report, the analysts note that the price per tonne of CPO fell 19% to a low of RM3,512 on Mar 24 in the span of three weeks, before recovering to the current level of RM3,794.
