Just as investors seek dividends in an uncertain market, plantation companies are turning their attention inward, focusing on boosting fresh fruit bunch (FFB) yields, analysts said. On the forecast for CPO prices, Kenanga Research said it expects it to average RM4,000 per tonne this year, down from RM4,308 last year. With average CPO prices ending firmer last year, he expects plantation companies to reinvest in mechanisation and replanting programmes to boost estate efficiency and maximise long-term planted acreage. “With exports still soft and inventories elevated, we see limited upside for CPO prices in the near term, which supports a more tactical, profit-taking stance for the sector,” the analyst said. According to Kenanga Research, plantation sector valuations have largely normalised and are now in line with the broader market after a late-year rally.

Source: The Star January 19, 2026 01:25 UTC