KUALA LUMPUR (Dec 6): RHB Research Institute said the build-up in plywood inventory in Japan is easing with low arrivals of import since September.
It said on Tuesday that generally, plywood prices are firming, although demand is not strong enough to push up prices up very much.
For log, prices have remained firm due to robust demand from India amid seasonal low log production period in Sarawak currently.
“We maintain our Neutral call on the sector as we remain cautious that the recovery in Japan housing starts could stall due to a protracted slowdown in the global economy.
“Nevertheless we still like Jaya Tiasa (Outperform, FV RM6.71) and Ta Ann (Outperform, FV RM6.49) as there will be significant boost to their earnings from PLANTATION [] going forward due to rising fresh fruit bunches production volume and favourable crude palm oil prices,” it said.
It said on Tuesday that generally, plywood prices are firming, although demand is not strong enough to push up prices up very much.
For log, prices have remained firm due to robust demand from India amid seasonal low log production period in Sarawak currently.
“We maintain our Neutral call on the sector as we remain cautious that the recovery in Japan housing starts could stall due to a protracted slowdown in the global economy.
“Nevertheless we still like Jaya Tiasa (Outperform, FV RM6.71) and Ta Ann (Outperform, FV RM6.49) as there will be significant boost to their earnings from PLANTATION [] going forward due to rising fresh fruit bunches production volume and favourable crude palm oil prices,” it said.
