Published: Wednesday September 12, 2012 MYT 8:41:00 AM
CIMB Research says plantations 2Q earnings bottomed out
KUALA LUMPUR: CIMB Equities Research believes that plantation earnings for most Malaysian planters may have bottomed in the quarter ended June 30, 2012.
It said on Wednesday that a significant pick-up in the third quarter production should more than compensate for the lower selling prices. However, 3Q12 earnings are expected to be weaker than the previous year due to lower selling prices and higher costs of production.
“We maintain our Trading Buy call on the prospect of a short-term CPO price rally due to weather concerns. Our top picks in the region continue to be Astra Agro, Indo Agri and Sime Darby,” said CIMB Research.