Kenanga Research raised the target prices for Malaysian palm oil firms such as Kuala Lumpur Kepong (KLK), Genting Plantations Bhd, TSH Resources Bhd and Ta Ann Holdings Bhd in a sector update.

The research house said in a note on Wednesday that higher crude palm oil production in June and a surge in demand from India and China prompted the change in target prices.

Keeping its "overweight" call on the plantation sector, Kenanga raised KLK's target price to RM23.50 from RM22.10, Genting Plantations to RM10.70 from RM9.90, TSH to RM3.15 from RM2.50, and Ta Ann to RM5.75 from RM5.08.

Crude palm oil prices should surge if El Nino weather patterns resume in the late winter or early spring period, said Kenanga.

Shares in KLK, TSH Resources and Ta Ann Plantations all rose, outperforming the Malaysian benchmark stock index that inched up 0.21 percent. Genting Plantation shares were flat. -- Reuters