STOCKS NEWS SINGAPORE-Golden Agri falls on tumbling palm oil futures
Singapore-listed Golden Agri-Resources dropped as much as 3.8 percent after Malaysian palm oil futures plunged to their lowest in more than three years on Tuesday.
By 0117 GMT, shares of palm oil firm Golden Agri were down 2.3 percent at S$0.64 with 42.3 million shares traded, making it the most actively traded stock.
Smaller rival Indofood Agri Resources Ltd also lost 3.4 percent at S$1.30, with 2.8 million shares traded, equivalent to its full-day average volume over the last five sessions.
Malaysian palm oil futures dived to their lowest in more than three years on Tuesday, hurt by slowing demand from Asia and a drop in the edible oil's appeal as a substitute for soy oil, with the U.S. soybean harvest progressing at a record pace.
CIMB Research said recent export figures and its channel checks on last month's crude palm oil (CPO) harvest suggest that stocks could have risen to a higher-than-expected 2.5-2.6 million tonnes as of the end of September.
"We believe there is sufficient storage capacity but the concern is that buyers may defer purchases," said CIMB. However, it expects CPO price to rebound by the end of the year due to its attractive pricing relative to soybean oil, and has a 'trading buy' rating on the sector.
Its top picks are Sime Darby Bhd, Indofood Agri and Astra Agro Lestari.
0925 (0125 GMT)
(Reporting by Charmian Kok in Singapore; email@example.com); Editing by Jijo Jacob