KUALA LUMPUR (Nov 11): Bursa Malaysia plantation shares, including Kuala Lumpur Kepong Bhd (KLK), PPB Group Bhd and United Plantations Bhd, were lower this morning ahead of today’s Malaysian Palm Oil Board’s (MPOB) October 2019 palm oil inventory data release, which is expected to show stockpiles rose from a month earlier.
Higher palm oil stockpiles dampen palm oil prices.
Earlier, Reuters, citing its survey, reported that Malaysian palm oil stockpiles likely rose in October as production increased to its highest in a year, even as export demand surged for the edible oil.
It was reported that inventories during October in the world’s second-largest palm oil producer are forecast to rise 2.8% from September to a seven-month high of 2.52 million tonnes, based on a median estimate of seven planters, according to traders and analysts polled by Reuters.
At Bursa today, KLK shed as much as RM1.06 or 4.71% to RM21.46, United Plantations Bhd fell as much as 36 sen to RM25.22 while PPB lost as much as 24 sen to RM18.
PPB’s exposure to palm oil is via its 18.5%-owned Singapore-listed associate Wilmar International Ltd.
In Malaysia crude palm oil markets, January 2020 prices fell RM3 to RM2,570 a tonne at 10:40am.