Investors continued to rotate into plantation stocks on the back of rising crude palm oil prices and falling inventory levels, which have seen the sector outperforming the broader market in recent weeks.
One such agribusiness player is Straits Times Index (STI) counter Wilmar International. Its shares, which also remain supported by progress of the listing of its Chinese unit, added 2.4 per cent yesterday to $4.22.
Other firms benefiting from greater investor interest include Bumitama Agri, up 2.7 per cent to 76.5 cents; First Resources, ahead 0.5 per cent to $1.86; and Olam International, unchanged at $1.78.
However, Golden Agri-Resources faced some selling pressure, dropping 2.2 per cent to 22.5 cents.
DBS Group Research analysts noted the increased interest in the sector and the expectations of greater profitability, but warned it would be "good to be selective despite the hype on the (palm oil) price rally". The research house likes Bumitama Agri, First Resources and Wilmar International, among locally listed producers.
Data out on Tuesday showed that Malaysia's November palm oil stockpile dropped 4 per cent month on month, less than expected as exports have weakened on higher prices. That said, the DBS analysts still expect palm oil prices to recover 19 per cent year on year.
The STI managed to recover most of Tuesday's losses yesterday, adding 10.01 points or 0.3 per cent to close at 3,172.9 after mounting speculation that the United States might delay tariffs on Chinese exports, due to take effect this Sunday, lifted sentiment.
Elsewhere in the Asia-Pacific, benchmark indexes in Australia, China, Hong Kong, Malaysia, South Korea and Taiwan were similarly lifted by tariff delay hopes. Japan bucked the trend.
Trading volume here came in at 920.57 million shares worth $1.02 billion. Traders noted that the below-average volumes and turnover were mostly due to caution ahead of the US Federal Reserve meeting later today.
Across the Singapore market, advancers trumped decliners 224 to 152. Of the blue-chip index's 30 counters, 10 were in the red.
Oanda Asia-Pacific senior market analyst Jeffrey Halley said: "With so much event risk over the next two days , it is no surprise that financial markets are sitting on their hands
"The most significant threat is the world is massively long on the global recovery trade, predicated on an interim trade agreement."
