On Friday at 11:18 (Bangkok time), the share price of Sri Trang Agro-Industry Public Company Limited (SET: STA) rose by 2.20% or THB 0.50 to THB 23.20, with a trading value of THB 323.77 million.
The share price of North East Rubber Public Company Limited (SET: NER) increased by 2.61% or THB 0.15 to THB 5.90, with a trading value of THB 20.65 million.
The share price of Thai Eastern Group Holdings Public Company Limited (SET: TEGH) surged by 2.92% or THB 0.10 to THB 3.52, with a trading value of THB 28.69 million.
The share price of Thai Rubber Latex Group Public Company Limited (SET: TRUBB) gained 4.23% or THB 0.06 to THB 1.48, with a trading value of THB 24.28 million.
Kasikorn Securities (KS) stated that the rise in rubber stocks was due to the growing trend of orders from automobile tire manufacturers in Europe and Japan, who were beginning to procure EUDR-grade rubber to stockpile in preparation for the upcoming guidelines set to be enforced at the beginning of 2025. Prices of rubber within the EUDR grade were expected to rise by 20% from normal rubber prices, further boosting the margins of businesses within this sector.
STA was a major operator in the market and had a number of leading automobile tire manufacturers from Europe and Japan as its client base, making the company to be the most beneficial.
The analyst expected the aforementioned catalysts to be effective in 2Q24 and would benefit rubber stocks.
