Earnings news to be catalyst for plantation share prices

According to UOBKH, the next share price catalyst for plantation stocks is “better earnings announcements” for 2020. The 2020 earnings will fully reflect the better (CPO) selling prices, it added.

PETALING JAYA: The share prices of plantation counters have caught up with the rising crude palm oil (CPO) prices and the next catalyst will be come from planters’ corporate earnings announcement, says UOB Kay Hian Research (UOBKH).

“We have raised our CPO price assumptions to RM2,400 per tonne for 2020 and RM2,350 per tonne from RM2,250 per tonne in 2020-2021 after taking into consideration the stronger price recovery since November 2019.