"A correction for CPO price is imminent. Chong thinks the CPO prices have peaked and expects to see correction in the next three to six months. Chong has downgraded his call on the plantation sector to “neutral” from “overweight” amid CPO price having reached its peak. “We also downgrade Kuala Lumpur Kepong Bhd (TP: RM26.62), TSH Resources Bhd (TP: RM1.48) and Ta Ann Holdings Bhd (TP: RM5.16) as valuations look unattractive based on our new TPs,” he added. At the time of writing, CPO price for June 2022 fell RM100 to RM6,594 a tonne, while the price for July 2022 CPO dropped RM110 to RM6,254 a tonne and August 2022 CPO shrank RM98 to RM6,036 a tonne.
