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Between 8–15 November 2024, CPO prices rose +3.4% WoW, averaging MYR 5,099/MT and hitting two-year high for the third consecutive week, primarily driven by tight supply outlook in Malaysia, the world’s second-biggest producer (25% of global supply). The country’s reserves declined -6% MoM in October to 1.88 mt, the lowest level since August, primarily due to robust demand from India, particularly amid Diwali festivity.
However, in 12-14 November, CPO prices tumbled -4.4% over three consecutive days, mainly due to -14.57% MoM drop in Malaysia’s CPO exports during the first 10 days of November, following the conclusion of Diwali celebration. Furthermore, the onset of winter in China may adversely affect the country’s demand for CPO, as it tends to solidify in colder temperatures, complicating storage and logistics.
The potential for higher output in December prompts us to retain our FY24 average forecast at MYR 4,100/MT (YTD: MYR 4,081/MT), with NSSS (TP IDR 265/sh) and TAPG (TP IDR 800/sh) as our top picks, supported by their relatively young plantation assets (less than 10 years old), which should translate to higher crop and extraction yields.
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
