Jaya Tiasa price correction is good for investors - Koon Yew Yin
The Jaya Tiasa price chart below shows that it was 61.5 sen on 27 January and it shot up to peak at Rm 1.23 28 February, an increase of 61.5 sen or 100% in about 5 weeks. As a result, many short-sighted investors are selling to pocket some profit. Short term price correction is expected and is a healthy sign. It is good for serious long-term investors to buy at lower prices.
KUALA LUMPUR (Feb 18): Malaysian crude palm oil (CPO) futures prices rose past RM6,000 a tonne for the first time to their all-time high on Thursday evening (Feb 17) after climbing as much as RM87 to RM6,054 in Bursa Malaysia’s extended trading session between 9pm and 11:30pm in what analysts describe as a palm oil industry super cycle amid supply constraints during seasonal low production in the first half of the year when demand is also expected to grow ahead of Hari Raya Aidilfitri in May 2022.
At 10:55am on Friday, March 2022 CPO price rose RM33 to RM6,000 a tonne after the commodity was traded at between RM5,986 and RM6,054 so far on Friday.
March 2022 CPO, which opened at RM6,000 a tonne at 9am, registered bid and ask prices of RM6,000 and RM6,002 respectively.
Public Investment Bank Bhd analyst Chong Hoe Leong wrote in a note on Friday that the palm oil industry witnessed an unprecedented super cycle with CPO futures topping RM6,000 a tonne on Thursday for the first time.
"We turn bullish on the sector as we expect a strong earnings trajectory for the plantation companies. We think CPO prices will remain strong in the first half of 2022 given the tight global vegetable oil supplies and also supply constraints for palm oil in the top two producing countries.
Unfortunately, there are a few less informed investors who are
thinking that my object of posting so many buy-recommendations of Jaya
Tiasa is to encourage them to buy to push up the share price to make me
richer. They cannot do it because the daily traded volume is tens of
million shares.
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