KUALA LUMPUR (July 7): The strengthening of US dollar (US$) against Malaysian Ringgit lately has sent Evergreen Fibreboard Bhd's share price to its highest point of RM1.64 since April 14, 2010.

The stock was opened at RM1.56 today and rose to a high of RM1.64, before pairing gains.

At 10.26am, the counter was traded at RM1.62, up nine sen or 4.51%, with some 3.69 million shares done.

The current price gives Evergreen (fundamental: 0.85; valuation: 0.9), some RM765.12 million in market capitalisation.

An analyst told theedgemarkets.com that the main factor contributing to the share price rally was the stronger US dollar, which saw Malaysian furniture maker as a net beneficiary of the trend.

The Ringgit plunged to its 16 years low of 3.8075 against the greenback yesterday, amid of the domestic political crisis and strong external headwinds such as Greek debt crisis.

At the point of writing, US dollar fell 0.05% against the Ringgit to quote at 3.8073.

"I do not think the share price rally would be short-lived, given the current situation is very positive to furniture maker," the analyst said.

For comparison, Homeritz Corporation Bhd was up 1.5 sen or 1.57% at 97 sen, with 532,900 shares done, giving it a market capitalisation of RM286.5 million.

Meanwhile, Poh Huat Resources Bhd was down 0.45% at RM2.20, with a market capitalisation of RM235.86 million.

The Edge Financial Daily had earlier reported that furniture stocks are expected to see further upside potential, bolstered by lower rubber prices and significantly higher exports due to the weak ringgit.

Analysts are also positive about local furniture makers' growth potential, as some have made plans to expand this year.