Bahana Securities said crude palm oil (CPO) price may recover in the next few weeks as the current downturn is not sustainable, and it expects strong demand from India and China.
"We remain positive on the Indonesian CPO counters as all CPO counters have underperformed the index by 8 percent in the last one month on seasonally low CPO price," Bahana Securities analyst Leonardo Henry Gavaza, wrote in a note on Thursday.
The research house's top picks in the sector are PT Astra Agro Lestari Tbk AALI.JK and PT BW Plantation BWPT.JK on positive growth outlook, recommends to buy the stocks.
At 13.35 a.m. (0635 GMT), the Jakarta Agriculture Index .JKAGRI was up 0.26 percent, while the broader Jakarta Composite Index .JKSE was up 0.38 percent.
