At 10:35 a.m., Golden Agri shares were down 1.3% at $0.75 on a volume of 167 million shares. The stock rose 57% last year.
The following companies may have unusual price changes in Singapore trading today. Stock symbols are in parentheses, and share prices are from the previous close. Singapore’s Straits Times Index dropped 1% to 3,229.27.
OCBC upgrades Golden Agri-Resources (E5H.SG) to Buy from Hold as house raises its fair value estimate to $0.91 from $0.78, which now provides upside of over 10%.
Says Golden Agri “is likely to see further boost from the continued run-up in CPO prices over the next six months, underpinned by supply-side issues” brought on by weather conditions in Indonesia. House again revises its CPO base assumption, in view of the current supply issues, to US$950/tonne from US$900/tonne.
CIMB downgrades Indofood Agri Resources (5JS.SG) to Neutral from Trading Buy on valuation grounds.
Still, it lifts target price to $3.24 from $3.17, based on 18x forward P/E, after increasing FY11-12 earnings estimates by 3% to account for higher rubber prices for unit London Sumatra (LSIP.JK) and lower taxes.
Singapore shares may open a tad higher on Thursday after Wall Street edged up overnight as gains in financial and technology stocks offset declines caused by a recent surge in bond yields. Singapore’s Straits Times Index increased 0.3% to 3,202.80.
The following companies may have unusual price changes in Singapore trading today, say Thomson Reuters and Bloomberg. Stock symbols are in parentheses, and share prices are from the previous close.
Morgan Stanley says market “now accepts that the 2H10 CPO production recovery will be weak, but may underestimate the persistent weakness in 1H11, which in our view will be followed by a supply rebound in 2H11.”
HSBC starts Golden Agri-Resources (E5H.SG) at Overweight, sets target at $0.90, starts Indofood Agri Resources (5JS.SG) at Overweight with $3.38 target, Wilmar International (F34.SG) at Neutral with $7.01 target.
HSBC says structural, regulatory drivers mean house estimates 2011 demand growth for crude palm oil will be at decade high, with bottlenecks in expanding acreage, unfavourable weather pressuring supply ahead.
OCBC downgrades Golden Agri-Resources (E5H.SG) to Hold from Buy, given limited upside, keeps $0.78 fair value, according to Dow Jones.
OCBC says CPO price rally, strong 21% on quarter recovery in CPO output boosted 3Q10 results; also notes company maintains positive CPO outlook, citing growing consumption of edible oils, fats, particularly by bulging middle classes in China, India, Pakistan.
Adds however, “management does not expect any increase in production this year (vs +5% previously), attributing the shortfall to the heavy rainfall over the past few months.”
Net income rose to US$99.17 million ($127.5 million) for the quarter ended Sept. 30 compared with US$70.56 million a year-earlier, the Singapore-based company said today in a statement.
At 0231 GMT, Golden Agri shares were down 1.9% at $0.765 on a volume of 3.9 million shares.
The following companies may have unusual price changes in Singapore trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. Singapore’s Straits Times Index rose 1.9% to 3,300.40 yesterday.
Bulk-shipping companies: The Baltic Dry Index, which measures the cost of shipping commodities, fell 0.5% in London yesterday, the longest losing streak since the period ended Sept 24. Cosco Corp. Singapore (COS SP), a China-based shipbuilder that also operates bulk carriers, gained 3.5% to $2.06. STX Pan Ocean Co. (STX SP), South Korea’s biggest bulk carrier, climbed 1.6% to $15.
Singapore plantation stocks strong on firmer CPO futures. “We think tighter supply/demand fundamentals for vegetable oils, higher crude oil prices and increased fund flows into the commodities space should provide support for higher CPO prices,” says Nomura.
Golden Agri-Resources (E5H.SG) +7.1% at $0.750, Indofood Agri (5JS.SG) +3.3% at $2.82, First Resources (EB5.SG) +3.7% at $1.42, Kencana Agri (F9M.SG) +2.3% at $0.44, Wilmar (F34.SG) +0.3% at $6.71.
Most of these companies yet to report 3Q10 results, guidance, which could take share prices even higher in coming days if performances favourable. Wilmar reports November 10, Golden Agri Nov 11.
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Golden Agri-Resources (E5H.SG), +5.3% at $0.68 midday, STI’s top percentage gainer, snaps four-session, 6.5% decline, after grievance panel of Roundtable on Sustainable Palm Oil said on Friday, according to Dow Jones.
Over 28.9 million shares had changed hands by 0252 GMT.
Indofood Agri Resources (5JS.SG) off 5.3% at $2.51 after opening in positive territory; 3Q10 consolidated revenue +9.7% on-quarter, net profit +13.3% on-quarter, helped by higher CPO selling prices, says Dow Jones.
High beta stock (weekly beta at 2.01) likely falling back after +19% vs $2.22 August low; despite bullish 4Q outlook for CPO, prices expected to moderate in 2011. Credit Suisse has Neutral rating, says palm oil prices usually peak December-March, but remains bearish in 2011.
At 0226 GMT, Indo Agri shares were down 3.8% at $2.55 on a volume of 1.8 million shares.
