KLSE (MYR): SOP (5126)
You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!
Last Price
3.05
Today's Change
+0.07 (2.35%)
Day's Change
2.98 - 3.06
Trading Volume
168,000
7 people like this.
3,357 comment(s). Last comment by Fabien _the efficient capital allocator 3 weeks ago
Intrinsic99
267 posts
Posted by Intrinsic99 > 2021-11-06 14:28 | Report Abuse
What we can observe market behaviour now is most of the fund managers start to revise outlook for CPO in the upcoming season, most of experts had expected the CPO prise shall be normalised in tandem.
Fund managers strongly believe that plantation companies shall be adjusted lower heading Trailing Twelve Months (TTM), that’s why most of the research houses given underweight outlook.
This is the reason why plantation sector not so fancy like year 2020 glove sector, fund managers strongly believe that once the CPO price normalise so ASP also simultaneously adjusted lower.
One of the good example to review is glove sector, what happen for the year 2020 compare with year 2021. Once most of the fund managers revise neutral or underweight outlook, we all can see the respective sector (or respective stocks) will start decelerating.
Despite glove sector still handsomely profitable for the next few years but most of the share traders more bias to ASP will be adjusted accordingly. This scenario is same with plantation sector as well.
If we want to enjoy fancy profit from the share price margin at this moment, we need to thoroughly consider is it the right time to challenge current circumstances since market had given cognitive lesson for the past of glove sector.
If we want to enjoy dividend yield (only selective planters), it’s fine to accumulate rather than putting your funds at the banks but now not aware current share price is it wisely to enter since plantation sector bias to neutral or underweight.