KUALA Lumpur Kepong Bhd, Malaysia’s third biggest palm oil producer, rose to a five-month high in Kuala Lumpur trading, leading an advance among plantation stocks after palm oil prices climbed to a month’s record.

At 12.30pm break, Kuala Lumpur Kepong Bhd, Malaysia’s third biggest palm oil producer, rose 30 sen, or 2.7 per cent, to RM11.30, set for its highest level since September 4. Sime Darby Bhd added 15 sen, or 2.7 per cent, to RM5.75. Batu Kawan Bhd rose 20 sen, or 2.3 per cent, to RM9.05.

Palm oil futures in Malaysia climbed 3.2 per cent, on course for their best close since January 12. They have risen 4.5 per cent in five days. The gains came after rival soybean oil climbed as a drought damaged crops in South America, the biggest shipper of vegetable oil and animal feed made from the commodity.

“We are long-term positive on the sector,” ECM Libra Capital Sdn Bhd said in a report today. The increase in palm oil prices have been “driven by news of potential supply shortfalls of soybeans in the market due to the droughts in Argentina.” It kept its “overweight” rating on the industry. - Bloomberg