Pure upstream players set to gain

Rakuten Trade head of equity sales Vincent Lau said this is good news for Malaysian plantation companies and will sustain the elevated CPO price at around RM6,000-RM7,000 per tonne levels. “I think even without this ban, the plantation companies will still report a solid set of results in the near term."

PETALING JAYA: Malaysian plantation companies, especially pure upstream players, are set to be the net gainers from the latest decision by the Indonesian government to expand its export ban on palm oil.

Listed plantation companies on Bursa Malaysia rallied yesterday, with stocks such as Batu Kawan Bhd rising 48 sen to RM29, Kuala Lumpur Kepong Bhd (KLK) firmed 48 sen to RM29.28, IOI Corp Bhd up nine sen to RM4.68 and Sime Darby Plantation Bhd advanced three sen to RM5.23.