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Wilmar, Golden Agri fall on high palm oil stockpile, index eases
December 11, 2013 / 4:31 AM / in 4 years

Wilmar, Golden Agri fall on high palm oil stockpile, index eases

SINGAPORE, Dec 11 (Reuters) - Shares in Golden Agri-Resources Ltd and Wilmar International fell on Wednesday, weighed down by high palm oil stockpile in Malaysia, making them among the worst performers on Singapore’s benchmark index.

Wilmar fell more than 1 percent to a one-month low of S$3.37, while Golden Agri shares fell 0.9 percent to S$0.55, hovering above a six-week low of S$0.545 hit last week, after data showed Malaysia’s November palm oil stockpile rose to an eight-month high on weaker exports.

“We expect near-term correction in palm oil prices, and recommend investors to take profit, following the strong run since the end of Sept. 13,” DBS Vickers analysts wrote in a research note.

Both Wilmar and Golden Agri shares have risen more than 15 percent from end of September to mid-November.

CIMB said it preferred Wilmar and First Resources Ltd among Singapore-listed palm oil plays, adding that the impact of the high stockpile should be partially offset by possibly lower production in Malaysia in December.

Singapore’s Straits Times Index was 0.3 percent lower at 3,073.77 points by 0420 GMT, set for its seventh straight session of losses -- the longest losing streak since August.

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