🚨 CPO prices breach RM5,000; Plantation index surges to 29-month high
• On Monday, Bursa Malaysia’s Plantation Index surged to a 29-month high, despite the broader market decline. According to a news article, analysts expect prices of crude palm oil (CPO) to remain elevated into 2025 as supplies tighten, ahead of Indonesia's plan to implement biodiesel containing a mandatory 40% blend of palm oil-based fuel (B40) from January next year. (TheEdge, 11 Nov)
• The Plantation Index closed 131.3 points or 1.72% higher at its near two-and-half-year high of 7,762.88 points, nearly 11% higher year-to-date, while settlement prices of CPO closed above RM5,000 per tonne on Friday.
• Shares of SD Guthrie Bhd (SDG), one of the world’s largest producers of certified sustainable palm oil, closed 2.8% higher on Monday at RM5.13, and is trading more than 11% higher than a recent low of RM4.60 on 30 October.
• Investors who wish to gain leveraged exposure to SDG may do so via our call warrant, SDG-C23. This warrant currently trades at a bid/ask price of RM0.085/0.090, and has an effective gearing of 5.8x, meaning it tends to move approximately 5.8% for every 1% move in SDG shares.
• The Plantation Index closed 131.3 points or 1.72% higher at its near two-and-half-year high of 7,762.88 points, nearly 11% higher year-to-date, while settlement prices of CPO closed above RM5,000 per tonne on Friday.
• Shares of SD Guthrie Bhd (SDG), one of the world’s largest producers of certified sustainable palm oil, closed 2.8% higher on Monday at RM5.13, and is trading more than 11% higher than a recent low of RM4.60 on 30 October.
• Investors who wish to gain leveraged exposure to SDG may do so via our call warrant, SDG-C23. This warrant currently trades at a bid/ask price of RM0.085/0.090, and has an effective gearing of 5.8x, meaning it tends to move approximately 5.8% for every 1% move in SDG shares.
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Macquarie, a leading warrant issuer in Asia, provides state-of-the-art market making, education on warrants, and an array of tools for warrant traders. Macquarie Warrants Malaysia issues and market makes structured warrants listed on Bursa Malaysia. The content on this channel has not been reviewed by the Securities Commission Malaysia | Contact: 03-20598840 | Disclaimer : bit.ly/MQdisclaimer
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