CPO

CPO: CIMB note that China's top-performing fund manager is favoring resource and agri stocks as the country intensifies its fight against the worst inflation in 3yrs amid rising commodity prices. Add that China is not alone in the fight, and countries worldwide are also engaged in battle against inflation with oil prices likely to extend this yr's surge amid concerns over supply disruptions in MENA, while global tensions recently added fluctuations to commodity prices…..

Recommends buying SGX-listed planters for exposure to rising commodity prices, with GoldenAgri as house top pick($0.85 TP). Also positive on Indofood Agri (TP $2.73) and Mewah (TP $1.41). Add that Indo is expected to experience stronger palm oil output growth than Malaysia, and oleochemical producers in Indonesia currently enjoy significant cost advantages due to the export tax. These trends will benefit the planters with estates in Indonesia.