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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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MPOC: Crude Palm Oil Prices to Stay Above RM4,750 in November Amid Tight Supply

Key Takeaway: CPO prices are expected to remain elevated, driven by supply deficits, rising global demand, and upcoming festive seasons.

Market Overview

  • November Outlook: Crude palm oil (CPO) prices are projected to stay above RM4,750 per tonne, with current trading at RM5,255 per tonne, according to the Malaysian Palm Oil Council (MPOC).
  • October Highlights:
    • Production: Declined to 1.79 million tonnes (-1.35% MoM, -7.2% YoY).
    • Exports: Hit a four-year high of 1.73 million tonnes, nearing July 2020's record.
    • Supply Deficit: Total demand of 1.94 million tonnes left a 210,000-tonne shortfall.

Key Drivers Supporting Prices

  1. Seasonal Demand:

    • Festive buying ahead of Chinese New Year and Ramadan.

  2. Global Supply Constraints:

    • Thailand's CPO export ban (effective until 2025) redirects demand to Malaysia and Indonesia.
    • European vegetable oil prices surged in October:
      • Sunflower oil: +12%
      • Palm oil: +9%
      • Rapeseed oil: +7%
    • Narrowed price premium between palm oil and sunflower oil indicates tighter supply.

  3. Biofuel Demand:

    • Indonesia’s B40 biodiesel mandate (starting January 2025) expected to boost palm oil consumption.

Potential Risks to the Price Rally

  • Weak Energy Markets: Falling energy prices could dampen biofuel demand.
  • Improved Soybean Supply: Favorable planting conditions in South America could pressure soybean and soybean oil prices.
  • Uncertainty Over US Biofuel Policies: President-elect Trump’s stance could impact biofuel demand and competition from soybean oil.

Outlook for 2025

  • Low Stock Levels: Malaysia and Indonesia are expected to maintain tight inventories through year-end.
  • Stagnant Production: Limited output growth in 2025 will continue to support prices.

Conclusion

CPO prices are poised to remain high as tight global supplies and strong seasonal demand drive the market. However, external factors such as energy markets and competing oilseed supply will need to be monitored closely to gauge the sustainability of the price rally.

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