Top Stories
Sector Update | Plantation
Indonesia's B50 mandate went live on 1 July with ample feedstocks. Stocks entered the switchover at 3.04m tonnes in May, partly due to a declining biodiesel offtake. Cargo surveyors put 1-25 July exports down 23.2% mom, shrinking the levy base that funds the subsidy for biodiesel production. We maintain our OVERWEIGHT call and our CPO assumptions of RM4,500/RM4,400 for 2026/2027 respectively, but tighten our palm oil-gasoil premium risk threshold for the B50 mandate.
Market Spotlight
- The FBMKLCI closed marginally higher yesterday by 3.08pt to 1,715.56 buoyed by positive sentiments in the overnight US market.
- US stocks were lower after the close on Wednesday, as losses in the industrials, telecommunications and technology sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Oriental Kopi Holdings | KOPI MK
Trading Buy Range: RM0.965-0.97
Yinson Holdings | YNS MK
Trading Buy Range: RM1.97-1.98
LBS Bina Group | LBS MK
Trading Buy Range: RM0.435-0.44
Top Stories
Sector Update | Plantation
Indonesia's B50 mandate went live on 1 July with ample feedstocks. Stocks entered the switchover at 3.04m tonnes in May, partly due to a declining biodiesel offtake. Cargo surveyors put 1-25 July exports down 23.2% mom, shrinking the levy base that funds the subsidy for biodiesel production. We maintain our OVERWEIGHT call and our CPO assumptions of RM4,500/RM4,400 for 2026/2027 respectively, but tighten our palm oil-gasoil premium risk threshold for the B50 mandate.
Market Spotlight
- The FBMKLCI closed marginally higher yesterday by 3.08pt to 1,715.56 buoyed by positive sentiments in the overnight US market.
- US stocks were lower after the close on Wednesday, as losses in the industrials, telecommunications and technology sectors led shares lower.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
Oriental Kopi Holdings | KOPI MK
Trading Buy Range: RM0.965-0.97
Yinson Holdings | YNS MK
Trading Buy Range: RM1.97-1.98
LBS Bina Group | LBS MK
Trading Buy Range: RM0.435-0.44
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