Sector Update � Plantation (NEUTRAL, maintain) - Inventory declines but exports still weak

Top Calls

Sector Update � Plantation (NEUTRAL, maintain) - Inventory declines but exports still weak Both CPO production and palm oil exports trended higher mom in May but remained lower yoy. Palm oil inventory declined to the lowest level in 62 months but is poised to rise again in the next few months as oil yield recovers further. The USDA cut its beginning inventory and raised consumption estimates for US soybean for 2016/17E but raised its world vegetable oil inventory marginally. El Nino has dissipated. We maintain our CPO ASP assumption of RM2,400/MT in 2016-18E, plantation stock TPs and sector NEUTRAL rating. We maintain our SELL ratings on FGV and GENP on valuation grounds.

Other Calls

Economy � IPI - IPI growth rises slightly to 3% yoy in April

Morning News & Market Summary

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