Shares of Singapore-listed rubber firm GMG Global (GMGG.SI) surged as much as 12% after Standard Chartered said its stock price underperformance relative to rubber prices was unjustified, reported Reuters.
By 10:15 a.m. on Wednesday, GMG shares were up 9.4% at $0.151 with nearly 155 million shares traded. This was 2.3 times its average full-day volume traded over the last five sessions.
By 10:15 a.m. on Wednesday, GMG shares were up 9.4% at $0.151 with nearly 155 million shares traded. This was 2.3 times its average full-day volume traded over the last five sessions.
Rubber prices have risen 27% from their lows in mid-November, but GMG's shares fell 16%, Standard Chartered said in a report.
“We see this divergence in performance as unjustified given historically high correlation of its share price and earnings to rubber prices,” the brokerage said, adding that the divergence represented a buying opportunity.
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