Golden Agri off 0.9% to $0.575 on modest volume, tracking sluggish broad market performance with investors paying little heed to plantation group's partnership with Liberian govt to undertake palm oil project in west African nation. Through its investment in Verdant Fund, Golden Agri will team up with Liberian govt to cultivate palm oil. Besides Golden Agri, Verdant will also seek funds from other investors to meet targeted US$1.6bn investment.
This investment is unlikely to contribute to the group's earnings in the immediate term as these are greenfield projects. Separately, Burger King will also halt oil palm purchases from Sinar Mas group, which incl Golden Agri for destroying rainforests following the footsteps of Unilever, Nestle & Kraft. Despite the news, CIMB keeps Trading Buy call with $0.62 target. Underlying support at $0.54.
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