JAKARTA (Yosefardi) – Integrated agriculture company Charoen Pokphand Indonesia (CPIN) gained 5.8% to Rp2,725 per share this morning, rebounded from recent fall due to weakening of rupiah.
Charoen, which produces feed, has dropped 50% from its peak in May 2013 after rallying from Rp2600 in September 2012. The stock gained substantially by 113% in the period of September 2012 to May 2013.
Its peers Japfa Comfeed also gained 4.76% to Rp1,100 per share while Malindo was flat at Rp2,625.
However investors might continue concern on weakening rupiah. Charoen and Japfa are predicted to seriously be affected by rupiah weakening. Both have reported lower net profit in the first half of this year despite strong sales revenue growth. Depreciation of rupiah would clearly boost theirs raw material costs.