Commodities stage a rebound on back of softer greenback, stronger crude

Are palm oil names attractive again?

Listed commodity players staged a mild rebound last week on back of a softer USD and stronger crude oil prices.

Data from CMC Markets show that SGX-listed palm oil names including Golden Agri and Wilmar saw some late buying into the close on Friday.

“Palm oil plays, once a key favourite amongst traders, have languished this past year, staying in the shadows of weaker crude oil prices,” noted Nicholas Teo of CMC Markets.

Teo also stated that amongst some of the listed plays, First Resources looks attractive at 10.5X trailing twelve months PE, especially after having lost as much as 40% over the past year.

“Looking at the charts, a ‘three thrusts reversal’ pattern seems to be forming. If the stock can break S$1.885, a test of its next resistance at S$1.915 and S$1.98 is possible. However, if the first support for the stock at S$1.825 fails to hold, we may also see it slide back to test its 2015 low of S$1.785,” he noted.