Glove stocks claw back three-month losses as rally extends
KUALA LUMPUR: The latest rally in glove stocks has erased much of the sector's losses over the past three months, with Kossan Rubber Industries Bhd returning to its June level and Supermax Corp Bhd surging well beyond it.
KUALA LUMPUR - A recent rally in glove stocks has largely reversed the sector's three-month decline, with Kossan Rubber Industries Bhd nearing its June level and Supermax Corp Bhd exceeding it. The rally began on June 11, when major glove counters started sliding for several months. As of now, Kossan is trading at RM1.23, the same as its June 11 close, while Top Glove Corp Bhd is just three sen away from its 83 sen close on the same day.
Hartalega Holdings Bhd is at RM1.18, around 10% below its June 11 close of RM1.31. Supermax is leading the comeback, trading at 43 sen, or approximately 41% above its June 11 close of 30.5 sen. These four are Malaysia's largest glove manufacturers by market capitalization, headed by Top Glove, followed by Hartalega, Kossan, and Supermax.
The sector-wide rally yesterday made glove stocks among Bursa Malaysia's most actively traded stocks, driving the Bursa Malaysia Healthcare Index up by 7% to 1,584.29, the index's largest single-day gain in nearly three months. The surge was driven by hopes of customers accelerating orders before potential price hikes due to increased crude oil prices affecting nitrile, a key glove production raw material.
Brent crude reached US$108 a barrel, surging above US$100 as Middle East tensions escalated. A major Chinese glove maker's recent increase in nitrile glove prices may prompt Malaysian producers to follow suit, potentially boosting margins.
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