JAKARTA - The price of crude palm oil (CPO) is currently expected to be in the short-term uptrend phase.
Meanwhile, palm oil production is expected to increase until September after growing for three consecutive months in May, supported by favorable weather and ongoing replanting efforts. However, downward pressure is partly resolved by signs of strong export demand.
MNC Sekuritas Head of Research Herditya Wicaksana said, by being in the uptrend phase, the increase in CPO prices would have a positive effect on several palm oil issuers, one of which was PT Jaya Agra Wattie Tbk (JAWA).
According to the man who is familiarly called Didit, investors can buy if Break with support at the 171 level, and the resistance is at the 190 level. Meanwhile, the target is at the level of the range of 200 to 212 per share.
"Currently, for CPO issuers, we estimate that they can be invested in the short term first, because seeing their movement in recent times tends to be consolidated," said Herditya, Tuesday, June 17.
In addition, the Director of PT Reliance Sekuritas Indonesia Tbk Reza Priyambada revealed, if viewed overall, JAVA's financial performance throughout Q1 2025 posted better results than the previous year which was able to record a profit of IDR 21.6 billion compared to Q1-24 which recorded a loss.
This condition shows an increase in sales from the company's main commodities, namely palm oil.
Imbas dari peningkatan Harga di sepanjang 2024 yang berlanjut ke Q1-25 serta peningkatan volume jual tampaknya turut berdampak positif pada kinerja JAVA. Ke depannya, tentu diharapkan Harga dari CPO dapat terjaga dengan baik sehingga dapat bermbas positif pada kinerja JAVA, tambah Reza.
He added, for the CPO sector itself, the performance movement of its emitants depends on fluctuations and demand for CPO in the market. Of course this can affect the movement of the stock prices of CPO issuers which will also fluctuate with changes in Prices and sentiment in the CPO industry.
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"In addition to Prices, additional sentiments, such as from our government's policy on bio-diesel development to extraordinary sentiment, both from the impact of the movement of commodity prices and the sentiment of CPO demand such as the entry barrier for CPO products in a number of countries, also affects the CPO price and it will also affect the movement of CPO stocks," he said.
Reza continued, for long-term investment, now this is what the CPO needs to see. If you look at the need, this CPO product should be processed a lot, you can go to retail industry, consumers, as well as cosmetics and others.
"However, the movement of CPO commodity prices also fluctuates following existing sentiments which will also affect the movement of commodity stocks. This is what we need to adjust when investing in CPO stocks so that they are situational in nature," concluded Reza.
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