21 July 2021
(Bloomberg) — Malaysian rubber glove producers rallied on Wednesday as the resurgence of Covid cases across the region renewed buying interest in their shares.
* Seven of the top 10 gainers on the bourse were gloves makers, led by Supermax Corp., which surged almost 11% to 3.75 ringgit; Adventa Bhd. jumped ~16% to 2.08 ringgit and Hartalega Holdings Bhd. gained about 4% to 7.85 ringgit
** Top Glove Corp., the world’s biggest producer, climbed 4.6%, while Careplus Group Bhd. surged 10%
* The surge comes amid a drop in the broader Asian markets, spooked by the spread of the more contagious delta variant; the main KLCI index was little changed 1,520.07 at the midday break, boosted by glove makers’ shares, while the MCSI Asean Index lost 0.2% after entering a technical correction on Tuesday.
* “In the short term, the glove sector moves in line with sentiments on covid cases and the state of the economy,” said Chua Zhu Lian, investment director at Fortress Capital Asset Management Sdn. “I remain optimistic on the sector’s prospects as the demand will continue to grow because of heightened awareness and higher hygiene standards post-covid.”
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