Robert Kuok's Wilmar Ghana gains to record on palm oil rally

Robert Kuok's Wilmar Ghana gains to record on palm oil rally
Business & Markets 2013
Written by Bloomberg
Friday, 02 August 2013 11:17

(Aug. 1): Wilmar International Ltd.’s Ghanaian unit climbed for a fourth day to the highest on record after crude palm oil gained, attracting pension-fund managers in West Africa’s second-biggest economy.

Benso Oil Palm PLANTATION [] Ltd., based in the Western region city of Takoradi, advanced 2.9 percent to 3.60 cedis by 12:03 p.m. in the capital, Accra, the highest since November 2004 when Bloomberg began compiling the data. Trading volume was equal to 1.8 times the three-month daily average.

Crude palm oil for September delivery rose a third day, advancing 0.6 percent to 2,280 ringgit ($703) a metric ton as shipments increased from Malaysia, the top producer after Indonesia, signaling a rebound in demand. Benso’s stock is the third-best performer on the Ghanaian bourse this year, which rallied 61 percent as managers of pension funds, created after restrictions on the industry were loosened, seek investments.

“Prices of palm oil are doing favorable now,” Randy Mensah, a stock trader at Accra-based Ecobank Development Corp., said by phone. “Buyers of these shares are pension-fund managers who are looking for the best stocks to invest their funds.”

Benso Oil’s net income declined 42 percent to 4.1 million cedis ($2 million) in the first half through June 30, it said on July 23. Revenue fell to 20.9 million cedis from 23.9 million cedis a year earlier, it said, blaming the drop on lower international palm-oil prices. In the period, the commodity retreated 9 percent.