Wilmar

Wilmar +6.3% to $3.19, the best-performing STI component amid the QE3-inspired rally, outperforming Noble +4.7% and Olam +4.6%, as well as the STI +1.2%. Religare reckons the gains are partly the result short covering. House still have a negative view on Wilmar given very high soy prices, which are going to impact upcoming quarters. If commodities are all doing well and potentially doing better because of QE, that could be a negative, with the positives on the palm-oil side not compensated by the negatives on the China soy-crushing side. Do note, however, that Wilmar has kicked in its share buyback with the purchase of 7.4m shares y’day at average price of $3.00. The previous times Wilmar executed its share buyback plan, the stock ran.