Shares of Singapore-listed rubber firm GMG Global (GMGG.SI) surged as much as 7.8% on Tuesday to a seven-week high after a local newspaper highlighted that the firm is expected to benefit from rising demand from China, traders said.
At 9:52 a.m., shares of GMG were 5.9% higher at $0.27 with over 34.6 million shares changing hands. This was more than double its average daily volume in the last five days.
At 9:52 a.m., shares of GMG were 5.9% higher at $0.27 with over 34.6 million shares changing hands. This was more than double its average daily volume in the last five days.
GMG Global is the largest supplier of natural rubber to China, which consumes a third of the world’s supply of the commodity, the Business Times said in a column on Tuesday.
It also highlighted that GMG Global was one of the world’s few listed rubber firms with a presence in plantation, processing and distribution.
“The stock is likely reacting to the column in the Business Times, which highlighted some of the investment merits of the firm that investors may have overlooked. Its share price has been relatively weak so far this year so it could have some catching up to do,” said a local trader.
GMG Global’s shares have fallen 10.2% since the start of the year.
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