We look at 6 plantation stocks that are currently trading on Bursa: IOI, KLK, Genting Plantation, Hap Seng Plantation, TSH Resources and CBIP. In this analysis, we will try to explore how movements in CPO prices affect the share prices of these stocks using a simple regression analysis. We use data since Jan 2015 till date.
The results are as follows:
- The statistical relationships appear significant for IOI, KLK and Genting Plantation. Based on the derived formula, these counters are currently trading close to their predicted values.
- For TSH, Hap Seng Plantation and CBIP, the relationships appear weak, suggesting non-reliable statistical properties. These three counters exhibit negative marginal correlation with the movement of CPO
- We also set the 95% upper bound and lower bound for these stocks, setting projected resistance and support price range.
- Nothing substitutes for a detailed fundamental analysis, this is only a quick-and-easy analysis.
- Further analysis is required – including a longer time frame of data
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