Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-DBS Vickers: plantation firms oversold

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STOCKS NEWS SINGAPORE-DBS Vickers: plantation firms oversold Jun 28th 2012, 03:54 Wed Jun 27, 2012 11:54pm EDT DBS Vickers said shares of plantation companies were oversold on the back of "over-pessimistic" crude palm oil (CPO) price assumptions. Most people were implying long-term price of 2,300 ringgit ($720) to 2,800 ringgit per metric tonne, or 7 percent to 20 percent below current levels, DBS said. Soybean export availability is likely to drop in June-November 2012 due to the South American crop failure earlier this year. Substitution or restocking is expected to lift CPO prices in the second half of 2012, DBS said. It forecast a 7 percent upside to around 3,200 ringgit for CPO prices. Planters with significant volume growth such as First Resources and Bumitama Agri Resources stand to benefit the most from both pricing and volume recoveries, DBS said. On Thursday, First Resources' shares were down 1.9 percent while Bumitama Agri Ltd gained 0.5 percent. 1140 (0340 GMT) (Reporting by Eveline Danubrata in Singapore; eveline.danubrata@thomsonreuters.com) ************************************************************ 10:40 STOCKS NEWS SINGAPORE-Maybank raises target on NOL Maybank Kim Eng raised its target price on container shipping firm Neptune Orient Lines (NOL) to S$0.95 from S$0.85, but kept its 'sell' rating. NOL shares were down 0.9 percent at S$1.09 on Thursday and have fallen around 3 percent so far this year, underperforming the broader Straits Times Index. Maybank Kim Eng said freight rates and fuel costs have shown signs of improvement and if this continues, they would help to stabilise NOL's prospects in the near term. The broker added that NOL might even break even for the remaining three quarters of the year after a poor first quarter. NOL reported January-March net loss of $254 million, much wider than a loss of $10 million a year ago. But overcapacity in the industry looks set to last until the end of 2013 and the global economy is still uncertain, Maybank said, adding that it is sceptical about the sector's ability to continue relying on liner cooperation to sustain a freight rate recovery. 1029 (0229 GMT) (Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com) ($1 = 3.1945 Malaysian ringgits) Link this Share this Digg this Email Reprints

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