GMG Global bouncing back to life in active trading as rubber price surged to RM1,059/kg, near to its Apr high of RM1,065, buoyed by expectations of economic recovery. Following its Apr peak, the commodity subsequently retreated to RM878 before rising sharply in late Aug. For month of Sep, rubber price climbed almost 5%. While valuations for the stock appears very rich at over 30x P/E, our empirical study shows GMG’s share price performance is strongly correlated to the rubber price.
Support for the stock lies at $0.25.
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