Bumitama Agri to Gain From Indonesia Palm Oil Price Recovery — Market Talk

Bumitama Agri is likely to benefit from Indonesian crude-palm oil prices normalizing, says Maybank Securities' Ong Chee Ting. Indonesia's crude-palm oil prices have returned to more than 15,000 rupiah a kilogram after earlier reports of hefty discounts because of concerns about the country's proposed export policy, he says. The uncertainty due to the policy appears to have blown over, he says. A quick normalization of these prices is crucial to Bumitama's bottom line as the company, which has largely Indonesian operations, is a pure-play upstream planter and sells its palm oil locally, the analyst says. Maybank Securities raises its rating to buy from hold, citing a recent share-price fall. It retains its S$1.87 target price. Shares rise 3.0% to S$1.73. (megan.cheah@wsj.com)