UOB Kay Hian: Indonesia OJK's role shift alleviates export concerns, upgrades First Resources to Buy

(1) UOB Kay Hian analyst Amerul Iqmal stated that the shift in the role of Indonesia’s Financial Supervisory Authority is expected to ease concerns about export bottlenecks and disruptions in palm oil supply. According to official sources, this state-owned company will no longer be the sole exporter, but will act as a pricing regulator. (2) The brokerage believes that the latest developments are slightly positive for Indonesian plantation operators, thus maintaining an overweight rating on the plantation sector. (3) After a correction in First Resources’ share price, UOB Kay Hian upgraded its rating from hold to buy, maintaining the target price at SGD 3.65. The stock rose 5.9% to close at SGD 3.05.