Bargain hunting lifts glove makers' share prices, say analyst, fund manager as situation remains 'volatile'

KUALA LUMPUR (Jan 25): Glove makers, whose share price tumbled at least 30% from their record highs, were seeing some bargain hunting today due to hope for sustainable high demand amid rising Covid-19 cases, according to a head of research and a fund manager The Edge contacted this morning. 

At 10.39am, Hartalega Holdings Bhd had added 68 sen or 5.52% to RM13, making it the top gainer based on value.

Supermax Corp Bhd, the second top gainer, advanced 47 sen or 7.2% to RM7. Top Glove Corp Bhd, the top fifth gainer, gained 30 sen or 4.8% to RM6.55.

Kossan Rubber Industries Bhd, Careplus Group Bhd, Comfort Gloves Bhd and Rubberex Corp (M) Bhd were also on the list of the top 30 gainers so far today.

Kossan increased by 18 sen or 4.3% to RM4.37, while Comfort Gloves rose 15 sen or 4.79% to RM3.28, Careplus leapt 15 sen or 6.07% to RM2.62, and Rubberex climbed nine sen or 5.17% to RM1.83.

Rakuten Trade Sdn Bhd head of research Kenny Yee told theedgemarkets.com that the rise in glove makers 'share prices may be due to hope for sustainable high demand as Covid-19 cases were hitting new highs, with more countries looking to lock down.

“Anyway, we reckon the situation remains volatile for glove companies amid positive developments of vaccines,” he said.

Meanwhile, Areca Capital Sdn Bhd chief executive officer (CEO) Danny Wong said that investors may be anticipating glove makers to deliver stellar results amid the results season.

“Every time when near to the results day, there would be some followers for glove stocks,” Wong told theedgemarkets.com.

Agreeing with Yee, Wong also expects glove makers' share prices to remain volatile until they show that they can sustain their earnings.