KUALA LUMPUR: Ta Ann Holdings Bhd’s net profit for the third quarter (Q3) ended Sept 30, 2021 surged to RM103.29 million from RM42.77 million in the corresponding quarter of 2020.
WHILE crude palm oil (CPO) prices hit a record high on Wednesday, with three-month futures prices closing at RM5,015 per tonne, market analysts still expect CPO prices and plantation earnings to decline in 2022.
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WHY are plantation stocks not on the radar of investors even though crude palm oil (CPO) prices have gained as much as 18% from RM3,070 per tonne on Nov 3 last year to RM3,632 per tonne last Wednesday?
Analysts say there are several factors dampening prices, but warn that environmental, social and governance (ESG) issues that now plague the sector could be the most damaging if not swiftly addressed. This is because international investors are increasingly placing great value on such practices.
As Covid-19 vaccines are now available, investors have shifted their attention from glove makers and manufacturers of personal protective equipment to technology stocks, owing mainly to strong demand for semiconductors. The lack of interest in plantation stocks is palpable as reflected in the Bursa Malaysia plantation index.