Summary
RISING commodity prices have spurred local investors to pump their money into commodity stocks. Is the rally sustainable?
COMMODITY prices have been rising this year in tandem with the rebound in equity markets worldwide despite the global economic slowdown. The phenomenon is not lost on local investors, who have been pumping back their money into commodity stocks. But can the rally sustain?See the full content of this document
Extract
The Return of the Commodity Play?
Anthony Dass, head of research of Inter-Pacific Research, thinks that the current run in crude palm oil or CPO prices is only for the short- term. `Seasonal CPO price factors have resulted in prices moving upward recently. CPO is currently testing the RM3,000 level, which may be unsustainable in the long term.'
As for oil, he says prices have been rising on expectations of increasing global demand spurred by economies like India and China, which may likely come out of a slowdown faster than anticipated.In early May 2009, CPO futures prices closed at their nine-month high at around RM2,700/tonne (from below R...See the full content of this document
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