Hoe’s top picks within the sector include more integrated players like Kuala Lumpur Kepong (KLK) and Wilmar International which are able to withstand the current price pressures better.
RHB Group Research is maintaining its “neutral” position on agriculture plantations as it waits for the dust around geopolitical tensions to settle.
Analyst Hoe Lee Leng writes that as fundamentals begin to improve, crude palm oil (CPO) prices have fallen with a “vengeance”, adding that while valuations are starting to look attractive, 2H2022 could see CPO prices moderate further, making trading strategy suitable in this environment.
