NST Online Business Times : latest

Posted: 07 Nov 2012 06:12 PM PST

MIDF Research raised its target price on Gas Malaysia Bhd to RM3.11 from RM2.84 after the gas provider's nine-month earnings came in above market expectations.

"As of yesterday's closing (RM2.62 per share), Gas Malaysia could still provide investors with a dividend yield of 4.5 percent and 4.3 percent for the financial year ending Dec.
31, 2012 (FY12) and FY13 respectively," the research house said in a note on Thursday.

Maintaining "buy" on the counter, MIDF said it was increasing its FY12 and FY13 earnings forecasts by 7.8 percent and 9.5 percent, respectively.

However, the counter declined 0.38 percent by 0134 GMT, underperforming the benchmark stock index's 0.17 percent drop. -- Reuters

CPO prices must stay at RM2,200: Mistry

Posted: 07 Nov 2012 05:31 PM PST

JAKARTA: Benchmark Malaysian palm oil prices must stay at around RM2,200 (US$720) a tonne for two months in order to stimulate demand for the edible oil and reduce high stock levels, a leading industry analyst said on Thursday.

Malaysian palm oil prices have already lost about a quarter this year to trade at around RM2,400 (US$780) a tonne, as stocks rise in top producers Indonesia and Malaysia and demand slumps, hit by a global economic downturn.

But palm prices must fall further within the next 4 to 6 weeks to lure buyers and cut back inventories, said Dorab Mistry, head of edible oil trading at Indian conglomerate Godrej Industries.

He made a similar call at an industry conference in Malaysia in October.

"One thing is crystal clear. Futures are very overpriced at present," Mistry said in a speech to be delivered at an industry meeting in the Chinese city of Guangzhou.

"A period of short-term pain will be rewarded with ample long-term gain."

Last month, second-largest producer Malaysia said it would cut export taxes next year, which has helped support crude palm oil prices. The government also said it would scrap duty-free export quotas.

Mistry said that by January, the government would have to announce loopholes and exemptions to this new export tax regime to allow substantial duty-free exports of crude palm oil, otherwise monthly exports will fall.

"In their euphoria, plantation groups and their cheerleaders have overlooked one simple but significant fact," Mistry said.

"In the last fortnight, palm oil has completely priced itself out of any meaningful energy demand," he added.

Palm oil is used as a cooking oil, biofuel and in cosmetics.

STOCKS TO MARCH HIGHER

Seasonally strong production may have driven Malaysian palm oil stocks to another record high in October, a Reuters survey of five plantation firms showed this week.

Inventory levels may have grown 7.5 percent in October to 2.67 million tonnes from a previous peak of 2.48 million in September, the poll showed.

Malaysian palm oil stocks are likely to increase further in November and December, Mistry said, adding that they will total 3 million tonnes by Jan. 1 next year.

Crude palm oil production will be 18.4 million tonnes by Malaysia this year and 27.5 million by Indonesia, he estimated.

Output prospects next year had brightened as a result of the fadeout of the El Nino weather event and better rain, he added. -- Reuters

Kredit: www.nst.com.my

Rabu, 7 November 2012

NST Online Business Times : latest

NST Online Business Times : latest

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