Trying to Make Sense Bursa Investments

Author: Ben Tan   |   Latest post: Thu, 6 May 2021, 4:47 PM


Supermax, Top Glove, Hartalega, Kossan: Local Institutions Buying Gloves

Author:   |    Publish date:

Last week glove stocks experienced a sudden and rather inexplicable surge in share price. So much so that JP Morgan felt it was important to issue a reconfirmation note of their bearish stance on the sector (see here). The only two pieces of news that were of any significance were the extra information Top Glove provided on labor-related rectification measures on Thursday the week before (see here), and Comfort Glove's bonus warrant issue announcement on Monday (see here). Care Plus published their FY2020 annual report on Friday after close of trade (see here). However, none of these seemed like a meaningful catalyst for the rally the market experienced. That is why when some were asking what to do, elsewhere I answered the following:

"Nothing has changed over the past several weeks in regards with gloves companies' business (except for with Top Glove of course). If you didn't think they were a good buy last week, there is no logical reason to buy now. If you thought they were a good hold last week, there is no logical reason to not continue to hold."

It turns out that local institutional investors have started reentering the glove sector after a months-long sell down which coincidentally intensified at a time when structured warrants were about to expire in the money (see here). According to CGS-CIMB, Supermax has been the top net buy for local institutions last week, followed by Top Glove and Hartalega. Kossan has come in 9th position. At the same time they have been net sellers of banks, specifically Maybank, Public Bank, and RHB. Year to date, however, Top Glove, Supermax, and Kossan are still among the top net sells for local institutions.

Interestingly, and importantly, retail investors have continued disposing of gloves. Top Glove has topped (pun not intended) retail investors' net sell list for second week in a row, while Supermax has come in second. From the point of view of volatility, this is good news for those investors still holding on to their glove stock, as weak stockholders are being shaken off. As can be seen from the two tables, last week's buying and selling behaviour has been diametrically opposite between local institutional investors and retail investors.

(Source: CGS-CIMB Weekly Fund Flow)

Important disclaimer: Any views expressed are for informational and discussion purposes only. None of this information is intended as, and must not be understood as, a source of advice. It is imperative that you always do your own research and that you make any decisions based on your personal situation and your own personal understanding.

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  11 people like this.
Seek Thanks Ben for the info data.
20/04/2021 2:07 PM
20/04/2021 3:41 PM
Ben Tan Seek, dusti, thank you for your comments.

dusti, giving publicly explicit personal views on investment-related matters may be seen as investment advice or market manipulation, so I would prefer avoid the trouble associated with that. If I see something useful or share-worthy, I would share it though, so that everyone could make their own decisions. Numbers are harder to question, especially when they come from third-party sources and are not opinion-based.
20/04/2021 3:47 PM
etct70 ben...very helpful sharing, tq
20/04/2021 6:27 PM
Wiser114411 https://www.theedgemarkets.com/article/kossan-earnings-top-rm1b-first-time-latest-1q-results-covid19-demand?type=corporate
20/04/2021 9:49 PM
speakup https://klse.i3investor.com/blogs/koonyewyinblog/2021-04-20-story-h1563423706-Glove_supply_exceeds_demand_Koon_Yew_Yin.jsp

so how?
20/04/2021 10:27 PM
Anthem2 Time to buy!
20/04/2021 11:07 PM
Shanjing777 Time to HOLD
21/04/2021 4:17 AM
zzzz52 Thanks again Ben for the continuous effort. Much appreciated.
21/04/2021 12:09 PM
assismanj Greta stuff. always enjoy your informative write-up on the glove sector.
21/04/2021 12:15 PM
banu3119 What about the dpharm shares
21/04/2021 10:48 PM
ezmoney Hi ben, could you share how can we find the top 10 buy/sell information?
22/04/2021 3:54 AM
speakup OSLO (April 21): The pandemic is be-coming less dominant in the markets and other risks, such as inflation and a stock market correction, are rising, as vaccines fuel optimism and recovery, a top official at Norway’s US$1.3 trillion wealth fund said on Wednesday.On the basis of strong stock markets, driven by the finance and energy sectors, the world’s largest wealth fund on Wednes-day reported earnings of US$46 billion between January and March, a 4% return on investment that beat its own bench-mark index.“I would still put it (the pandemic) as one of the top three risks, absolutely, at this stage. We are seeing a slightly more balanced risk picture because there is more optimism now for growth and inflation,” chief executive officer Trond Grande told Reuters after the first-quarter results.While stocks earned a return of 6.6% for the fund, the fixed income portfolio had a rare loss of 3.2%, as interest rates rose substantially after a prolonged slide.“What you are seeing are some signs of some build-up of some inflation here and there, at least on the materials and raw materials side,” he said.“If that translates into inflation more broadly, I think you could see interest rates rising further,” he said adding that he had been a “little surprised” by the strength of the equity markets over the past year.“There will be at some point a correc-tion. We just need to be prepared for it,” he said, declining to say when he expected it.The fund invests the Norwegian state’s revenues from oil and gas production into 9,100 companies worldwide, owning 1.4% of all listed shares globally. It also invests in bonds, property, and since this month it has invested in green infrastructure.Its investment comprises 73.1% in eq-uities, 2.5% in unlisted real estate, and 24.5% in fixed income.
22/04/2021 10:18 AM
Ben Tan etct70, Wiser114411, speakup, Anthem2, Shanjing777, zzzz52, assismanj, banu3119, ezmoney, thank you for your comments.

ezmoney, CIMB shares an updated report every week on fund flows.

speakup, I have been considering writing a detailed post on inflation. I'll try to get that done soon.
22/04/2021 4:36 PM

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