Shares of palm oil firm Golden Agri Resources (GAGR.SI) and rubber producer GMG Global (GMGG.SI) rose on Thursday on expectation that commodity prices will increase next year.

At 0245 GMT, GMG Global shares were up 4.8% at $0.325 on a volume of 29.2 million shares. Golden Agri shares gained 1.9% at $0.79 with 36 million shares changing hands.

 

“There has been talk of commodities play. People think that commodity prices will go higher next year because of inflation, so the commodities suppliers will benefit,” said a local trader.

 

“Upstream play is more favoured than downstream because of higher raw material prices,” he said, adding that Golden Agri derives more revenue from upstream production compared to its peer Wilmar International (WLIL.SI).

 

Wilmar shares were up 0.3% at $5.99 on a volume of 1.5 million shares.