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STOCKS NEWS INDONESIA-Plantation firms fall on weak palm oil exports
July 17, 2013 / 3:03 AM / in 4 years

STOCKS NEWS INDONESIA-Plantation firms fall on weak palm oil exports

Shares of Indonesian plantation firms fell as much as 0.62 percent to 1791.65 on Wednesday on lower palm oil export volumes, underperforming the broader Jakarta Composite Index , which was up 0.58 percent.

Exports of crude palm oil in June fell 11 percent to 1.62 million tonnes from 1.82 million tonnes a month earlier, the Indonesian Palm Oil Association (GAPKI) reported.

The drop in export volume was unusual ahead of Ramadan, which shows demand is weak, analyst Hariyanto Wijaya of Jakarta-based Mandiri Sekuritas said in a report on Wednesday.

“We estimate CPO price would further decrease in the second half of this year, which would further drag down the share price of plantation companies as investors are concerned about the profitability of plantation companies,” Wijaya wrote.

Palm oil producer London Sumatra shares fell as much as 5.3 percent to 1,260 rupiah, the lowest in nearly four years. Shares of Astra Agro Lestari, Sampoerna Agro and BW Plantation slid more than 1 percent.

The Jakarta agriculture index has fallen 13.15 percent year to date, underperforming the broader JCI index, which has gained more than 8 percent.

0940 (0240 GMT) (Reporting by Andjarsari Paramaditha; Editing by Prateek Chatterjee)

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