Saturday, September 5, 2009

ECM Libra: CPO exports to be slower this month

KUALA LUMPUR: Crude palm oil (CPO) exports are likely to be slower this month following stronger production and festive season in Pakistan, according to ECM Libra. Pakistan had made heavy purchases of palm oil for August and September, the firm said in a research note yesterday.

ECM Libra said many factors like weather, poor fertilisation, practices and government replanting that might stem the growth in production numbers.
Last month, the CPO stocks stood at 1.3 million tonnes, the same level as in July. However, the research firm said that news reports on drought in India are likely increase demand for the commodity in the region.

Meanwhile, ECM Libra Investment Research has maintained its neutral recommendation on the property sector.It said while the property sector has bottomed out and was recovering, conditions were not sufficient to re-rate it.ECM Libra said its stock picks remained selective, preferring mid- to small-capitalised property developers where valua-tions were more compelling. “Among the picks are Sunway City, for its resilient property investment earnings while there is potential upside from recovering property development earnings, and Sunrise due to its strong brand name and prime landbank,” it said in its research note yesterday.

It said there was pick-up in commercial activities in August following the acquisition of a 50 per cent stake in Menara Citibank by Hap Seng Consolidated, as well as the sale of an eight-storey corporate block in Southgate commercial centre by Mah Sing to Koperasi Permodalan Felda Bhd.
ECM Libra said Glomac was also finalising the sale of a 30-storey corporate tower at its Glomac Damansara project to a government agency.

It said following a pick-up in property transactions in recent months, more developers were now planning new property launches. “Among them are IJM Land, Mah Sing, Selangor Dredging, Dijaya Corp, GuocoLand, MRCB, Metro Kajang, TA Enterprise and TSR Capital,” it said.
— Bernama

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