Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Can Wilmar regain its early-August form?

Wilmar’s share price came back down to earth last week, after hitting an 8-year high earlier this month. Still, analysts are optimistic about the stock's outlook.

What is the Wilmar International SGX: F34 share price outlook and rating? prediction forecast dividends 2020 2019 2021 dps buy sell long short trade trading cfd Source: Bloomberg

Why did the Wilmar stock plunge 11.5%?

Palm oil producer Wilmar International’s (SGX: F34) shares are still down some 9% from record highs achieved three weeks ago.

The stock plunged as much 11.5% after was reported last Thursday 20 August 2020 that one of its main shareholders – namely Chicago-headquartered Archer Daniels Midland (ADM) – had reduced its stake in the agribusiness group by 2.68% through a share sale kickstarted a day earlier.

A total of 170.5 million Wilmar shares, priced at S$4.40 each (9% below the last traded price on the day of the announcement), were offloaded. This amounted to S$750.2 million in sale proceeds for ADM.

On 26 August 2020, ADM also issued US$300 million (S$408 million) worth of zero-coupon exchangeable bonds maturing in 2023 at 104% of their principal amount.

ADM added that it plans to retain at least 20% of its total shareholding in Wilmar.

According to an ADM statement, the Wilmar Shares sold were being offered and sold in offshore transactions, as well as inside the US, to qualified institutional buyers in private transactions exempt from the registration requirements of the Securities Act.

Wilmar shares hit an eight-year high on 13 August

Wilmar’s share price has recovered slightly since, but remain some ways below an eight-year peak of S$4.90 recorded earlier this month (13 August 2020).

Wilmar’s share price had rallied strongly after it posted a 50% year-on-year improvement in net profit to US$610.9 million (S$829 million) for the six months ended 30 June 2020.

Are you looking to trade Singapore stocks without having to buy and sell the actual assets? CFD trading allows you to do just that. Sign up for a live or demo IG account today.

The group’s board of directors consequently proposed an interim tax exempt (one-tier) dividend for H1 2020 of S$0.04 per share, 33% higher than 2019’s first half dividend amount of S$0.03.

Following that, we had included Wilmar in our 'Top Singapore Dividend Stocks to Watch' list.

However, Wilmar’s Chairman and CEO Mr. Kuok Khoon Hong had stated that the group is ‘cautiously optimistic’ that its second half performance ‘will be satisfactory’, even despite palm prices increasing recently.

Analysts maintain their ‘buy’ rating on Wilmar

Following the share sale by ADM, CIMB analysts maintained their ‘add’ rating on the stock and a target price of S$5.53 a share.

They noted that while the development ‘could lead to concerns over short-term overhang on Wilmar shares’, they also believe this will allow ADM to ‘unlock’ the value of its investments in Wilmar.

The analysts also remain positive on Wilmar’s planned initial public offering of its Chinese subsidiary Yihai Kerry on the Shenzhen Stock Exchange ChiNext Board, currently pending final registration approval.

Finally, they reiterated that Wilmar’s favourable earnings prospects for the rest of the financial year, alongside another round of potential special dividend, are key share price catalysts.

Nevertheless, some key risks to the current call include delays in Yihai Kerry’s listing, lower-than-expected processing margins from key business divisions, as well as share placement by major shareholders at a discount to market price.

As of 28 August 2020, the stock has received a 12-month consensus share price target of S$5.04 per share from six analysts - unchanged from two weeks ago.

This also come alongside an average rating of ‘buy’ – based on a Refinitiv poll of 15 brokers, unchanged from 13 August 2020.

How to trade Singapore stocks with IG

Are you feeling bullish or bearish on Wilmar's share price? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

  1. Create a live or demo IG Trading Account, or log in to your existing account
  2. Enter <Wilmar International Ltd> in the search bar and select the instrument
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

React to global volatility

Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support
Create account
Log in now
Log in now
Log in now

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.