The Blackmores Limited (ASX: BKL) share price has exploded higher in March, surging more than 11% to today's price of $114.29. The entirety of that gain (and then some) came during Tuesday's session, during which the BKL share price rocketed more than 13%.
Indeed, the shares have risen marginally higher today, bucking the trend set by the broader S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) – which has fallen 90 points or 1.6% – with Bellamy's Australia Ltd (ASX: BAL) shares also up 3.4% for the session.
Check Blackmores' performance out on the chart below:
Blackmores is a vitamin producer. Although the majority of its sales are generated in Australia and New Zealand (51% during the latest half), it is believed that many of those products are ultimately intended for Asian markets.
That is, they are purchased in Australia but then shipped to Asian markets, particularly China, via the grey market. Another $64 million in sales (20% of group sales) were made directly to China during the latest half-year period.
While the BKL share price has recently been burdened by investor concerns related to regulations in China, it seems the country has indefinitely backed down from changes to the cross-border e-commerce (CBEC) framework, first announced in April last year, which may have eased some of those concerns.
It has been reported that goods imported through this channel will be treated by the customs and quarantine authorities in that country as 'personal' parcels, as opposed to 'common' trade, reducing the requirements companies must meet in order to sell their products in the region.
Hence, yesterday's news will no doubt come as a relief for shareholders who have watched their Blackmores shares plummet since early last year. Indeed, they managed to top $220 per share in January 2016 but have since traded for as little as $97.91.
