KUALA LUMPUR: Despite the current crude palm oil (CPO) price rally, the momentum may not be sustainable in the fourth-quarter of this year as stockpile is expected to rise during the peak production period.
PublicInvest Research has revised its average CPO price to around RM2,500 per tonne in 2020 from RM2,300 per tonne previously to account for the rise in the year-to-date price of the commodity.
With the upward adjustment to its CPO price assumption, it has also raised its price-to-earnings ratio valuations across the companies under its coverage by two times to reflect improved outlook compared with the pre-movement control order period.
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