Golden Agri (breaking news): +0.9% in morning trade. Likely up on mgt update regarding Golden VerOleum and Govt of Liberia (GoL) partnership, for the US$1.6bn investment in oil palm cultivation and refining…
However, we note that market may not have factored in news that yesterday, Burger King said it would drop Sinar Mas as a supplier for palm oil. Burger King was unsatisfied with the findings of the independent audit of Sinar Mas palm oil unit SMART’s land clearing practices. There are also concerns that SMART had misrepresented certain findings in the report…
Other major palm oil customers like Unilever, Nestle and Kraft have already stopped doing business with SMART, to uphold their corporate image. Be wary of possible share price overhang, especially since the latest Burger King issue raises pressure on other corporate buyers, particularly the fast food chains such as Pizza Hut, KFC and Dunkin’ Donuts to do the same.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment