Japan’s Tyre-makers Stock Gains on Increased Citi Growth Forecast
Shares in Japan’s three largest tyre manufacturers (Bridgestone, Yokohama and Sumitomo) have risen in Tokyo trading this morning, following recommendations made by Citigroup. Bloomberg reports that the gains were made following a report by Citi’s analysts suggesting 2010’s global demand growth in tyres would be 8.2 per cent, as opposed to the previously quoted 5.5 per cent.
Bloomberg says that Yokohama led the way, jumping up to 3.5 per cent to 442 yen, while Bridgestone (1.6 per cent to 1,588 yen) and Sumitomo (1.7 per cent to 830 yen) posted more modest gains. Analysts had changed their recommendations on all three companies to “buy”.
“We expect investors to start pricing in earnings recoveries next fiscal year once the seasonal increase in natural rubber prices ends,” the report continued. Bloomberg explains that free-on-board prices for Thai RSS-3 grade rubber for May delivery hit 130.55 baht per kilogramme – a new record, says the financial news source – on 26 April.