KUALA LUMPUR (June 9): Following the government’s decision to exempt the export duty on both refined and crude palm oil (CPO) and palm kernel oil, investors have showed keen interest in plantation stocks.

As of noon market close, FGV Holdings Bhd was up by 0.9% or a sen higher at RM1.12 per share. The counter reached an intra-morning high of RM1.16, but is now trading at its intraday low.

Meanwhile, Kuala Lumpur Kepong Bhd rose by 1.91% or 42 sen at RM22.46. The integrated planter gyrated between its intra-morning high of RM22.62 and -low of RM22.36, and has since recovered from the low.

Plantation behemoth Sime Darby Plantation Bhd was up by 2.42% or 12 sen higher at RM5.08, giving it a market value of RM39.97 billion. It saw 1.87 million shares traded.

Meanwhile, Genting Plantations Bhd, which closed for the noon break unchanged at RM10.14, rose to RM10.30 this morning.

Predominantly upstream players also saw gains. For example, IJM Plantations Bhd was up by 3.57% or six sen at RM1.74, valuing the company at some RM1.53 billion.

Sarawak Oil Palms Bhd was up by 0.92% or three sen at RM3.3, valuing it at some RM1.88 billion. The counter saw 83,400 shares done.

Bursa Malaysia’s plantation index was up by 1.5% or 101.64 points at 6,888.66 points. CPO futures contracts for delivery in July were up by RM43 at RM2,378 a tonne.

The upward momentum displayed by plantation companies today followed the government’s measures to conduct an exemption of export duty for both refined and CPO and palm kernel oil.

As part of wider measures to stimulate the economy, the move is touted to increase the competitiveness of Malaysian palm oil products reserved for exports.

Source : The Edge Markets