Don't count Olam out just yet

The low-price commodities environment provides rich pickings for mainboard-listed companies, to buy core assets on the cheap, as they seek longer-term returns

Sat, Jan 03, 2015 - 5:50 AM

Chan Yi Wenyiwenc@sph.com.sg@ChanYiWenBT

Olam last month broke its year-long streak of divesting non-core assets, buying instead US peanut sheller McCleskey Mills for US$176 million and Archer Daniels Midland's cocoa business for US$1.3 billion.

PHOTO: OLAM INTERNATIONAL

THE year 2014, which saw key commodities such as palm oil, sugar and cotton plunge to five-year lows, has come and gone. Yet, analysts continue to "underweight" the sector, expecting few positive catalysts in the near to medium-term.

Still, it may be premature to throw the baby out with...