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Keeping CPO export tax at 4.5% positive for M'sian refiners
Publication Date : 18-03-2013
CIMB Equities Research said Malaysia's decision to keep its crude palm oil (CPO) export tax at 4.5 per cent in April is positive for Malaysian refiners, and neutral for its planters.
It said on Monday the decision was, however, not a surprise as spot CPO prices had been hovering between 2,250 ringgit (US$718) and 2,400 ringgit ($760) in recent weeks.
CIMB Research said Malaysian refiners would continue to enjoy feedstock cost advantages of up to 4.5 per cent, enabling them to compete with their Indonesian peers.
"With an unchanged export tax rate from the previous month, the decision is neutral for planters. Overall, we make no changes to our Neutral sector call or our top picks that include Wilmar, Astra Agro, and Indo Agri," it said.