Higher target prices for palm oil stocks

Kenanga Research raised the target prices for Malaysian palm oil firms
such as Kuala Lumpur Kepong (KLK), Genting Plantations Bhd, TSH
Resources Bhd and Ta Ann Holdings Bhd in a sector update.

The
research house said in a note on Wednesday that higher crude palm oil
production in June and a surge in demand from India and China prompted
the change in target prices.

Keeping its "overweight" call on
the plantation sector, Kenanga raised KLK's target price to RM23.50
from RM22.10, Genting Plantations to RM10.70 from RM9.90, TSH to RM3.15
from RM2.50, and Ta Ann to RM5.75 from RM5.08.

Crude palm oil
prices should surge if El Nino weather patterns resume in the late
winter or early spring period, said Kenanga.

Shares in KLK, TSH
Resources and Ta Ann Plantations all rose, outperforming the Malaysian
benchmark stock index that inched up 0.21 percent. Genting Plantation
shares were flat. -- Reuters