Shares of tyre companies rise on weak rubber prices

Shares of tyre companies extended their gains in morning trade on Tuesday, adding to the sharp spikes of Monday, on the back of weak natural rubber prices that are at multi-year lows.

"Rubber prices continue to fall and are trading near 5-year lows. This will continue to support margins in the medium term," said an analyst with a local brokerage.

Shares of Apollo Tyres jumped 3 per cent, adding to their 8 per cent gain on Monday while JK Tyre and Industries surged 4.7 per cent, extending a 17.8 per cent rally from the previous session.

Ceat shares surged 8.4 per cent, adding to a 20 per cent surge on Monday.

(Reuters)