First Resources

First Resources: was leading the declines in the palm oil plays yesterday and today. No particular negative news to highlight. In fact, yesterday, Maybank -KE noted that the 2Q14 profits for the plantation plays will likely be stronger y/y, boosted by strong FFB output and higher CPO ASP. HSBC today says El Nino could turn out to be a non-event, and though there could be short term pressure on palm oil, the house believes any near term weakness in the sector should be seen as an entry opportunity. First Resources and Golden Agri are its preferred plays, both rated Overweight.