=MARKET BUZZ: Malaysia Plantation Stocks Fall After Indonesia Eases Export Rules
KUALA LUMPUR (Dec 06) -- Sime Darby Plantation down 0.6% at MYR4.77, while IOI Corp slides 2.3% to MYR4.28 and broader Bursa Malaysia Plantation Index off 0.7% after Indonesia eases rules on palm oil export levies following a drop in prices. Analysts say measure may dampen demand for Malaysia’s palm oil amid expectations for rising inventories. Removal of export levy will raise competitiveness of Indonesian palm oil product exporters as they would have saved $20-$50 per ton export tax when crude palm oil price is below $570 per ton, says CIMB Investment Bank Analyst Ivy Ng; adds, move is likely to benefit upstream planters and disadvantage processors.
- By Jason Ng; Jason.Ng@NikkeiNewsRise.com; +60320267363
- Edited By Suzannah Benjamin
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