Chart of the Day: Rubber-focused stocks hit average 18% gains in December

Average ROE reached 16.4%.

This chart from the Singapore Exchange (SGX) shows that rubber-focused stocks in the bourse saw an average return of 18% in 10 December YTD. China Sunshine Chemical saw the highest returns of 45.7% YTD amongst the six stocks.

Four other stocks saw positive returns including Sri Trang Agro-Industry (36.7%), Riverstone Holdings (14.5%), and Top Glove (42.1%). Meanwhile, returns for Halcyon Agri Corp and UG Healthcare were recorded at -29.8% and -1.2% YTD, respectively.

Meanwhile, the average return on equity (ROE) for the six stocks hit 16.4%, which ranges from 2.0% for Halcyon Agri to 34.8% for China Sunsine Chemical.

“Key business drivers for the sector include rubber prices, current and expected consumer demand in addition to competitors pricing,” SGX said. “The European Research and Rubber Laboratories note that in order to respond to the requirements of its customers, providers of general rubber goods also need to develop a very close relationship with its customers.”

In 2017, total average returns for the rubber-focused stocks hit 18.5%.