CPO Prices Soar, These 5 Palm Oil Issuer Stocks Reap Cuan! – After world

Jakarta, CNBC Indonesia – Together with the price of futures contracts on crude palm oil (raw palm oil/CPO), which has skyrocketed since the beginning of this year, has also boosted the performance of some palm oil issuer stocks.

According to Refinitiv data, CPO prices corrected by 0.64% to MYR5,592/tonne on Monday (31/01/2022) after rising for four straight days.

On Friday last week, CPO prices managed to break their recent all-time high to close at MYR 5,628/ton.

Since the beginning of the year alias year to date (ytd), CPO prices are up 19.05%.

Below is the performance of the 5 most successful palm oil issuers since the beginning of this year:

Top 5 Palm Oil Issuers With Highest Rise Ytd

Kode-Ticker

Final Price (RP)

Increase (%) Ytd

DSNG

600

20.00

CSRA

595

19.00

TAPG

695

13.93

LSIP

1.260

6.33

AALI

9.900

4.21

Those: IDX | Last price as of January 31, 2022

From the above data, two shares of Ciputra Group owned by entrepreneur TP Rachmat, PT Dharma Satya Nusantara Tbk (DSNG) und PT Triputra Agro Persada Tbk (TAPG) stiegen seit Jahresbeginn um 20.00 % bzw. 13.93%.

The sharp rise was largely driven by Monday’s close, when shares of DSNG and TAPG closed with gains of 15.38% and 9.45%, respectively.

Shares of PT Cisadane Sawit Raya Tbk (CSRA) are also up 19.00% year-to-date. Like the Ciputra group duo above, CSRA shares are up 10.19% yesterday.

The shares of issuers of the Salim Group should not be missing PT PP London Sumatra Indonesia Tbk (LSIP) and Astra Group PT Astra Agro Lestari Tbk (AALI) are also up 6.33% and 4.21% year-to-date, respectively.

Previously, Indonesia, as the world’s largest producer and exporter of palm oil, announced a commitment to domestic sales (Domestic Market Commitment/ DMO) 20% for all palm oil producers to reduce local cooking oil prices. As a result, the CPO price soared throughout the last week, hitting its highest price ever.

“Indonesia’s export restrictions have changed market dynamics,” said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy based in Mumbai.

“The vegetable oil market has already been disrupted by weather and labor issues, government policies are now adding to the uncertainty,” he added.

Buyers have started turning to soybean oil and sunflower oil for delivery in February and March, the Mumbai-based trader for the global trading firm said.

“The Palm rally is destroying demand. Prices have to fall or they will lose market share,” said the retailer.

It is feared that the DMO policy implemented by the Indonesian government will reduce the supply of CPO in the global market at a time when the demand for CPO is high. This will lead to a shortage of supply, which will ultimately make the price of CPO more expensive.

According to Statista, Indonesia is the largest CPO producer in the world with a 42.5% share of global CPO production. So Indonesia’s impact on world CPO prices is big.

Just so you know, the Indonesia Stock Exchange (IDX) and the Malaysia Derivatives Exchange — a venue for trading CPO futures contracts — are closed today to celebrate the 2022 Chinese New Year.

CNBC INDONESIEN RESEARCH TEAM

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Reference-www.nach-welt.com

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