Investment Banks Remain Positive On Plantation Counters Amid Higher Crude Oil Prices
KUALA LUMPUR, Sept 11 (Bernama) -- Plantation counters remained in focus as investment banks maintained a positive stance following a surge in Brent crude oil prices beyond US$100 per barrel amid renewed US-Iran tensions.
According to MBSB Investment Bank Bhd, firmer crude oil prices could push energy prices higher, improving biodiesel blending economics and enhancing the viability of Malaysia's B15 and Indonesia's B50 mandates.
“It indirectly supports stronger domestic consumption and absorbs excess palm oil supply,” it said in a note today.
Meanwhile, RHB Investment Bank Bhd said higher crude palm oil (CPO) prices, coupled with rising fresh fruit bunch output, should support continued earnings improvement among Malaysian and Indonesian plantation companies in the third quarter of 2026.
“With the probability of a very strong El Niño now at 95 per cent for October to December 2026, we expect the impact on production to mainly be felt from 2027 onwards,” it said.
Yesterday, the Malaysian Palm Oil Board (MPOB) released its August report, showing that Malaysia’s total palm oil stocks rose by 196,590 tonnes, or 7.48 per cent, to 2.82 million tonnes in August 2026 from 2.62 million tonnes a month earlier.
MPOB said palm oil exports declined 7.50 per cent to 1.29 million tonnes in August 2026 from 1.39 million tonnes a month earlier.
CPO stocks increased 15.20 per cent, or 217,092 tonnes, to 1.64 million tonnes from 1.42 million tonnes in July 2026.
At 11 am, SD Guthrie’s share price was four sen higher at RM6.24 with 4.36 million shares traded and IOI Corporation was unchanged at RM4.79 with 242,500 shares traded.
United Plantation was also flat at RM33.30 with 135,300 shares traded, and Kuala Lumpur Kepong eased 40 sen to RM22.34 with 25,100 shares traded.
-- BERNAMA