Singapore plantation stocks succumbing to some profit-taking after recent hefty gains fuelled by firm CPO prices.

“This is a high-risk rally driven by liquidity,” says UOB KayHian analyst Leow Huey Chuen; “if you are sitting on a huge profit, no harm locking in profit for the year.”

Notes while supply issues may keep edible oil prices firm in short term, rising regulatory risks in China and India, which have been trying to address food inflation, could cap upside for prices.

Golden Agri-Resources (E5H.SG) off 1.4% at $0.73 vs +13.8% so far this month, Indofood Agri (5JS.SG) off 1.8% at $2.70 vs +5.8%, First Resources (EB5.SG) flat at $1.41 vs +11.9%. STI +0.5% since beginning November.