Karex up 3%, seen to benefit from weaker ringgit, rubber prices

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KUALA LUMPUR (Dec 10): Karex Bhd rose as much as 2.8% today after The Edge Research said the condom manufacturer stood to benefit from a strengthening US dollar against the ringgit.

The Edge Research said lower natural rubber prices also augured well for Karex.

Karex rose as much as nine sen to RM3.26 before reducing gains at market close.
 
At 5pm, Karex climbed seven sen to settle at RM3.24 with 627,000 shares traded.

For comparison, the FBM KLCI rose 27.42 points or 1.58% to close at its intraday high.

Karex is featured as a "Stock with Momentum" based on algortithm by The Edge Research's report.

The report is available in The Edge Financial Daily and theedgemarkets.com today.

The Edge Research said Karex "benefited from softer latex prices, its key raw material. Latex prices have been trending down this year and are now at five-year lows, the result of supply glut."

"Karex will also benefit from the strengthening of the US dollar vs the ringgit, as the bulk of its sales are destined for overseas markets and denominated, mainly, in the greenback," Edge Research said.