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  • BUY Entry – 1.70 Target – 1.90 Stop Loss – 1.60
  • Olam is a leading food and agri-business operating across the value chain in more than 60 countries, supplying food, ingredients, feed and fibre to more than 17,300 customers worldwide. Listed on 11 February 2005 on the mainboard of SGX, Olam currently ranks among the top 30 largest listed companies in Singapore in terms of market capitalisation and is a Singapore constituent stock of the FT Global All Cap Ex US Index.
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  • Higher food prices. Food prices globally have risen in 13 of the past 15 months and are near their peak of 2011, owing to poor weather and pandemic-related disruptions. Earlier in October, The United Nations Reported that its Food Price Index (FFPI), which tracks the international price of a basket of food items, is already up 30% in 2021 from the 2020 annual average, the largest increase in 47 years. The escalating cost of producing fertilisers and transportation are exacerbating the surge in food prices. 
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  • Catalyst from the listing of Olam Foods Ingredients (OFI).  OFI intends to seek a primary listing on the London Stock Exchange and a concurrent secondary listing in Singapore in the first half of 2022. The London listing could raise about 2 bn pounds (US$2.8 bn). OFI reported a 29.5% YoY increase in 1H2021 EBIT and the company expects its strong business momentum to continue into the second half of 2021. 
  • Technical analysis. Olam share price has gained 36% from the recent low touched in July, and are currently testing the resistance of S$1.79. Since the rally from July, the 20 day EMA has provided firm support to its ongoing uptrend. 
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