Finding Bottom For Plantation Stocks

We look at 6 plantation stocks that are currently trading on Bursa: IOI, KLK, Genting Plantation, Hap Seng Plantation, TSH Resources and CBIP. In this analysis, we will try to explore how movements in CPO prices affect the share prices of these stocks using a simple regression analysis. We use data since Jan 2015 till date.

The results are as follows:

palm oil

Key Observations:

  1. The statistical relationships appear significant for IOI, KLK and Genting Plantation. Based on the derived formula, these counters are currently trading close to their predicted values.
  2. For TSH, Hap Seng Plantation and CBIP, the relationships appear weak, suggesting non-reliable statistical properties. These three counters exhibit negative marginal correlation with the movement of CPO
  3. We also set the 95% upper bound and lower bound for these stocks, setting projected resistance and support price range.
  4. Nothing substitutes for a detailed fundamental analysis, this is only a quick-and-easy analysis.
  5. Further analysis is required – including a longer time frame of data

 

DISCLAIMER: THIS SITE IS FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION.  SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS.

Author: Ken Utau

Data Scientist, Markets Analyst and Food Lover

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