KUALA LUMPUR (Sept 2): Several plantation stocks edged upwards on the back of stock picking today, analysts said.

At 3.06pm, Kuala Lumpur Kepong Bhd (KLK) shares rose 2.06% or 42 sen to RM20.82, with 227,000 shares done.

Genting Plantations Bhd shares climbed 1.86% or 18 sen to RM9.85, with 119,100 shares done.

Sime Darby Bhd shares inched up 0.53% or 4 sen to RM7.51, with 2.46 million shares traded, while Felda Global Ventures Holdings Bhd (FGV) shares rose 1.64% or 2 sen to RM1.24, with 3.97 million shares changing hands.

When contacted, CIMB Research analyst Ivy Ng said stocks, such as Sime Darby and Genting Plantations, have been sold down earlier and were now the focus of stock-picking.

“Fund managers are probably buying these stocks as it may be a good time to accumulate them as they are trading below their inherent value,” she said.

“This applies to investors who are looking at dividend yield, long-term accumulation,” she added.

Public Bank Research analyst Chong Hoe Leong said this trend, however, will not remain long as there are no catalysts for crude palm oil (CPO) prices.

“CPO prices are still at a low level and I don’t think the market will see a rebound in prices soon,” he said, adding the palm oil industry is on the brink of entering its seasonally high production period.

The CPO November futures contract is currently trading at RM1,989 per tonne. It reached a year high of RM2,375 in April this year.