Hot stock: Golden Agri falls to lowest in six years
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SHARES in palm oil giant Golden Agri-Resources fell to their lowest level in six years on Tuesday morning, following lower prices in palm oil futures.
The stock was trading at 35.5 Singapore cents at 11am, down 1.4 per cent, or 0.5 cent. It fell to as low as 34 cents in morning trade.
The counter has been on a downward trajectory since the beginning of July, as palm oil futures in Malaysia trended lower. Golden Agri is the second largest palm oil firm in the world by acreage.
The near-term outlook for Golden Agri remains "somewhat muted", as drier conditions are expected in Indonesia in the coming months due to El Nino, OCBC Research said in a June 17 report.
"While some plantation stocks have run up on this news, any impact on production is likely to come later; it usually takes as long as 6-9 months for the tree stress to show up," it said.
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