COMMODITIES(B-Trams):Palm oil market closed at MYR 3,320 per tonne today after rising to as high as MYR 3,380 last week At 5pm, the 30-stock index rose 1.91 points, or 0.14% to 1,383.17 after moving between its intraday high of 1,383.58 and low of 1,377.35., while as traders returned from holidays amid caution ahead of an industry survey for May inventories.
The broader market sagged, with decliners overtaking advancers 507 to 355 while 413 counters were unchanged. About 3.55 billion shares, valued at RM1.91bil, changed hands.
Meantime, cargo surveyors indicate that Malaysian exports contracted between 0.8% and 1.8% last month. Market players also weighed on concerns about soaring output levels in the top producer, Indonesia.
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Foreign investors upped the ante in disposing of stocks listed on Bursa Malaysia, selling RM506.5mil of local equities last week, a level last seen in the middle of March.
In its weekly fund flow report, MIDF Research said foreign investors have been sellers of 16 out of 22 weeks this year, with a total net foreign outflow of RM2.96bil.
MPOA 1-31 May 2023 vs. 1-30 Apr 2023 Malaysia CPO production
| State |
May (1-20) |
April |
Overall May (1-30) |
| Peninsular |
+9.48% |
-6.10% |
+27.94% |
| Sabah |
+4.94% |
-11.71% |
20.80% |
| Sarawak |
+20.44% |
-10.06% |
+35.40% |
| East Malaysia |
+8.33% |
-11.35% |
+26.33% |
| Total Production |
1.51 Millon Tones |
Meanwhile Local institutional investors turned net buyers last week at RM372.9mil while retailers acquired RM133.6mil worth of equities last week.
Among the losers on Bursa Malaysia, Panasonic Manufacturing eased RM1.50 to RM19.86, Hong Leong Financial Group fell 52 sen to RM17.06, Carlsberg lost 46 sen to RM20.42 and Malaysian Pacific Industries slid 34 sen to RM27.
Leading Analyst and founder of palm oil analytics Dr. Sathia Varqa said the exports are down and overall production is increasing so the market will move to bearish tone
Jakarta has set its crude palm oil reference price at $811.68 per tonne for the period of June 1-15. The new reference price would place CPO export tax at $33 per tonne and levy at $85, lower than the previous period. In India, palm oil imports sank to a 27-month low in May as buyers canceled expensive cargoes of edible oil and replaced them with cheaper soy oil and sunflower oil, Reuters said.
while, regional equities closed mixed. Japan’s Nikkei 225 advanced 0.9% to 32,506.78 while South Korea’s Kospi closed up 0.54%, at 2,615.41. Hong Kong’s Hang Seng ended 0.05% lower at 19,099.28.& China’s CSI300 index fell 0.94% to 3,808.16 while the Shanghai Composite eased 1.15% to 3,195.34.
In the conclusion Palm oil market will be in the bearish side, As exports are down and production are increasing in Malaysia after labor issues resolved , however B-Trams Analystical team predicited that Palm oil will be trade below 3,200 Ranges this week.
