KUALA LUMPUR: Sime Darby Bhd, Sime Darby Property Bhd and Sime Darby Plantation Bhd had a mixed debut on the local stock market this morning.
At the opening, Sime Darby jumped 30 per cent or 55 sen to RM2.40 and Sime Darby Plantation added 1 sen to RM5.60 while Sime Darby Property settled 20 sen or 13 per cent to RM1.30.
Sime Darby counter was suspended from 27th November 2017 until today's listing of its property and plantation arms.
Today's listing of Sime Darby Plantation and Sime Darby Property as separate entities from the holding company Sime Darby, is aimed at unlocking value for the group and its investors.
With the split into pure plays, the leaner Sime Darby is now focused on motor trading and heavy machinery businesses.
When asked on the share price performance, Permodalan Nasional Bhd chairman Tan Sri Wahid Omar, who is also Sime Darby Property chairman replied, “we don't look at the debut individually.”
“Collectively, all three entities did better today than the RM8.94 closing price before the split,” he told reporters here today, after the listing ceremony.
Also present were Sime Darby group chief executive Jeffri Salim Davidson, Sime Darby Property managing director Dato' Sri Amrin Awaluddin, Sime Darby Plantation deputy executive chairman and managing director Tan Sri Mohd Bakke Salleh.
Jeffri noted the smaller entity is unlikely to see much change in dividend policy from the usual of 50 per cent net profit payouts to shareholders.
When asked to comment and forecast on palm oil futures pricing movement, Bakke replied the recent fall to around RM2,600 per tonne is dragged by India’s higher taxes on palm oil purchase, strengthening of ringgit against the US dollar and seasonally higher oil palm fruit harvest.
"Prices are expected to trade between RM2,500 and RM2,600 per tonne for the next few weeks. As we enter into low cropping season in 2018, we hope to see palm oil prices rebound at higher levels,” Bakke said.