First Resources (EB5.SI) stock surged 3.53% in Wednesday's trading session, as investors responded positively to analyst recommendations and sector outlooks. The palm oil producer's shares gained traction following a report from RHB IB analysts highlighting potential volatility in the crude palm oil (CPO) market and naming First Resources as one of their top picks in the sector.
According to RHB IB analysts Hoe Lee Leng and Iftaar Hakim Rusli, the palm oil industry faces a complex near-term outlook. They cite trade tensions and Indonesia's B50 biodiesel mandate as factors contributing to potential price volatility. While concerns over high global soybean stocks and narrowing CPO-soybean oil price gaps may pressure demand, the analysts also point to potential supply tightening due to La Nina weather patterns, which could support prices.
Investors appear to be betting on First Resources' ability to navigate these market dynamics successfully. The company's inclusion in RHB's list of top picks, alongside other major players like Johor Plantations and IOI Corp., suggests confidence in its strategic positioning within the sector. As the palm oil market braces for potential volatility, First Resources' stock performance indicates that market participants view the company as well-positioned to capitalize on emerging opportunities and weather potential challenges in the industry.