Jakarta, CNBC Indonesia – 2021 will be the year for commodities, especially Crude Palm Oil (CPO). The price of CPO flew and touched its highest level of all time and became a positive catalyst for the shares of domestic palm oil issuers.
On Friday (8/10/2021) the price of contracted CPO on Bursa Malaysia broke MYR 4979/ton and became the highest level since trading. In Year to Date (YTD) CPO prices have shot up by 37.64%.
When CPO prices soared, the median return of palm oil issuers that provided large funds was 37.98%. This is in line with the increase in CPO prices throughout 2021.
The three stocks with the largest capital gains this year are PT Triputra Agro Persada Tbk (TAPG), PT Pinago Utam Tbk (PNG), and PT FAP Agri Tbk (FAPA). All three provide returns of more than 50%.
Interestingly, the three issuers are palm oil producing companies that have recently been listed on the domestic stock exchange, considering that they are even less than two years old.
This shows that stocks that have not been listed for a long time tend to be more sensitive to global CPO price movements. All three also have a market capitalization value of below Rp 10 trillion when they are listed on the stock exchange.
The market capitalization value that is not too large coupled with the relatively new listing age and positive sentiment from the increase in CPO prices makes the stock price easy to lift.
In the case of FAPA stocks, the All Time High (ATH) level occurred last Friday (8/10). Meanwhile, in the case of TAPG and PNGO shares, their ATH levels were reached on October 6, 2021 and June 4, 2021, with returns since listing of 212.4% and 426.14%, respectively.
Meanwhile, shares of palm oil issuers with large market capitalization and have been listed for a long time tend to lag behind. Examples are the shares of PT Astra Agro Lestari Tbk (AALI), PT London Sumatra Indonesia Tbk (LSIP), and PT Smart Tbk (SMAR).
The following is a breakdown of the share price movements of palm oil issuers:
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Photo: Tri/Putra Palm stocks- – |
The trend of CPO price movements will be a sentiment for the movement of national palm oil stock prices. When the price of CPO tends to strengthen, there is hope that the income of national palm oil issuers will also be boosted so that this phenomenon is responded positively by investors. As a result, the share price also went up.
Vice versa, when the price of CPO decreases, the market will expect a decrease in sales from CPO producers which will result in a decrease in their share price.
CNBC INDONESIA RESEARCH TEAM
(hps / hps)
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