Shares of palm oil firm Golden Agri-Resources (GAGR.SI) fell as much as 2.6% on Thursday after J.P. Morgan said the stock looks fully valued for now and there was limited upside to crude palm oil prices.

At 10:35 a.m., Golden Agri shares were down 1.3% at $0.75 on a volume of 167 million shares. The stock rose 57% last year.

 

J.P. Morgan said Golden Agri’s share price has performed strongly in the last six months and was now trading at a price-earnings ratio of 14 times for its 2011 financial year, 25% above its historical mean P/E.

 

“J.P Morgan said CPO (crude palm oil) prices may stagnate for a while, so there will be a correction more or less across the board. They are bearish on Golden Agri in particular, but overall the best is probably over for a while,” said a local trader.

 

“First Resources’ share placement may have dampened investors’ appetite to buy more,” he added.

 

Shares of Singapore-listed palm oil firm First Resources (FRLD.SI) fell as much as 9.3% earlier on Thursday after its main shareholder, Eight Capital, sold 75 million shares of the company at $1.48 each.