Positive start for agribusiness investment
The listed agribusiness sector has made a positive start to 2009, according to new data released today by the Commonwealth Bank.
The Commonwealth Bank Agri Indicators Index recorded an increase for the agri sector of 7.8 per cent in January compared to the S&P/ASX 200, which experienced an increase of just 4.4 per cent for the same period.
Commenting on the index result, Commonwealth Bank Agribusiness acting executive general manager, Dale Champion said the recovery in the listed agribusiness sector over the past month was good news to start off the year.
He said the data reinforced the importance of adopting a long-term approach in circumstances where, despite the sector being significantly under-priced, it would take time to mount a full recovery.
“In addition, forecast volatility for the next 12 months is at 28 per cent, so while there may be potential buying opportunities in agri stocks, it is still a cautionary tale,” Champion said.
AUTHOR
Mike Taylor
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