Too early to call top on plantation stocks, Kenanga stays ‘overweight’
Kenanga Investment Bank maintains an 'overweight' rating on plantation stocks, citing elevated palm oil prices driven by weather risks and geopolitical tensions. Analysts expect prices to remain high through 2027 due to El Niño-related yield impacts.
Why it matters
Palm oil is a critical commodity for global food and energy supplies; its price volatility significantly impacts inflation and the profitability of major agricultural firms.
BURSA SGX Home Sector Focus Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (July 7): Rising weather risk is set to keep palm oil prices elevated on top of geopolitics, providing further upside for plantation stocks, Kenanga Investment Bank said.
The article summarizes financial analyst projections and market data without taking a subjective stance on the industry.
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