KUALA LUMPUR: AmInvestment Bank Bhd is positive on the plantation sector, citing its defensive qualities amid market uncertainties.

In a research note today, the bank said it assumes an average crude palm oil (CPO) price of RM4,400 per tonne for 2026, up 1.6 per cent from RM4,332 per tonne in 2025.

The projected improvement is underpinned by Indonesia's planned rollout of the B50 biodiesel policy in the second half of 2026.

"Although the full impact of B50 is expected to materialise only in 2027, news of the rollout is likely to support CPO prices," it added.

AmInvestment Bank said it favours companies with significant upstream exposure, given a bleak outlook for refining and oleochemicals.

The bank maintained its overweight rating, with top picks including SD Guthrie Bhd, target price RM6.20, and Johor Plantations Group Bhd, target price RM2.00.