CIMB Turns Tad Cautious On Asia Palm Oil Sector

Asian plantation sector is still good bet but a potential crude oil price pullback is a worry, says CIMB. Broker says crude palm oil (CPO) price well supported by strong fundamentals, remains optimistic on sector, but is "turning a bit cautious owing to concerns over a potential correction in crude oil price." Says major unwinding of funds out of commodities, global recession could put crude oil price under pressure; CPO price closely linked to fate of crude oil price. Makes no change to big-cap picks, which remain Wilmar (F34.SG), IOI Corp. (1961.KU), Astra Agro (AALI.JK). Among the mid-cap planters, broker prefers Asiatic (2291.KU), Indofood Agri (5JS.SG), Sampoerna Agro (SGRO.JK). Of the Singapore-listed stocks, Wilmar currently +1.2% at S$5.15, Indofood Agri +1.8% at S$2.83.