The share price of Sri-Trang Agro-Industry Plc. (SET: STA) rose THB1.25/share or 4.81% to THB27.25/share as of 12.05 hrs. local time in Thailand, with a trading value of THB328 million.
Asia Wealth Securities said that an increase in rubber product prices boosted sentiment for STA’s stock. Rubber product prices increase by continuing to set a new high record, raw latex is at THB73 per kilogram (highest in 9 years), the price of the 3rd class smoked sheet rubber is at THB67.70 per kilogram, cup lumps are at THB51.50 per kilogram higher than the price of rubber farmer income insurance phase 3, while the price of raw rubber is moving in a frame of THB61-63 per kilogram that is considered a higher price level of income insurance price at THB60 per kilogram.
An increase in the price of rubber products is in line with the commodity price direction, especially the rising global crude oil price. Previously, theWTI crude oil contract for April delivery peaked at USD133.46 per barrel (4 Mar), while the 2022 WTI crude futures rose 44.2% YTD.
Recommend “BUY” with a target price of THB31 per share (17% upside).
