Wednesday, June 20, 2012


Wilmar: +4.5% at S$3.71 on strong volume, the best-performing STI component despite lacking fresh news, outperforming commodity plays' regional risk-on rally. DBSV note that it's just been oversold. On a fundamental basis, don't see the share price going as low as it did a few weeks back, primarily because house expect some uplift in earnings in 4Q this year, mainly due to the expansion of refining capacity in Indonesia. Add that in context of second-half results, they should be much better. The fiscal-2Q results' disappointment "makes the share-price appreciation a bit harder, given whatever upside there is would be capped by people wanting to get out of the stock. So the catalysts are still a few months away. House has TP of $4.25.

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