Tepid palm oil rebound expected

But the low price environment offers opportunities for stock investors with longer-term horizons

Published Mon, Mar 9, 2015 · 09:50 PM

Singapore

THE muted recovery of crude palm oil (CPO) prices has dragged the valuation of plantation stocks down, offering investors an entry point to ride on the commodity's medium-term price uptick, said Dorab Mistry, director of Godrej International.

As reported by CIMB Research, Mr Mistry had opined at a palm oil presentation organised by Bursa Malaysia on Thursday that it is now an opportune time to invest in plantation stocks. With the commodity cycle now at a low point and share prices having lost their lustre, he believes that investors who buy and hold plantation stocks will consequently benefit from a crude palm oil price hike in the next two years.

On Monday evening, CPO for June 2015 delivery traded on Bursa Malaysia at around RM2,246 (S$852), up from a five-year-low in August 2014, but dow…