Friday 29 Mar 2024
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KUALA LUMPUR (Jan 9): Evergreen Fibreboard Bhd rose 5% today, as the company is expected to benefit from the strengthening of the US dollar against the ringgit.

At 2.52pm, Evergreen was up 4 sen or 5.8% at 73 sen, with some 6.1 million shares done. It had earlier risen 4.5 sen or 6.6% to reach a high of 73.5 sen.

Over the past two weeks, the counter has gained 19 sen or 35.2% from its closing price of 54 sen on Dec 26, 2014.

A remisier told The Edge Financial Daily the rise could be due to the strengthening dollar, as the company’s products are targeted at the export market.

“The counter has actually been on the uptrend, over the past two weeks. I think this could be due to the strengthening of the dollar against the ringgit,” he said.

Based on its latest annual report, sales to the US account for 3.5% of its total revenue of RM938.7 million for the year ended Dec 31, 2013.

The US is also Evergreen’s fourth largest export market, after South East Asia, Middle East and Far East Asia.

Due to a combination of factors, including the weakening of crude oil prices, the ringgit has weakened to 3.5568 per US dollar, compared to rates ranging from 3.27 to 3.30 per dollar a year ago, according to Bloomberg data.

Evergreen has appreciated 5.8% year-to-date, outperforming the FBM KLCI, which has depreciated 2.0% during the same period.

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