Kenanga downgrades rubber glove makers
Publish date: Thu, 04 Oct 2012, 10:19 AM
Kenanga Research downgraded its call on Malaysia's rubber glove makers to 'neutral' from 'overweight' as a stronger ringgit is expected to dent exports.
"There is a high probability the ringgit could continue to strengthen against the dollar, threatening the glove players' earnings growth going forward," Kenanga said in a research note on Thursday.
Additionally, recent earnings from the sector were below expectations and the benefit Malaysian glove makers have enjoyed from low latex prices could be muted in the coming quarters, it said.
Kenanga cut the target price on Top Glove Corp Bhd to RM5.36 per share from 5.80, Supermax Corp to RM2.20 from 2.50 and Kossan Rubber Industries to RM3.38 from 3.64.
At 0947 (0147 GMT), Top Glove was down 0.77 per cent at 5.14 ringgit per share, while Kossan was untraded at RM3.04 per share and Supermax was down 0.5 per cent at RM2.
The KLSE composite index was up 0.16 per cent at 1652.36. - Reuters
"There is a high probability the ringgit could continue to strengthen against the dollar, threatening the glove players' earnings growth going forward," Kenanga said in a research note on Thursday.
Additionally, recent earnings from the sector were below expectations and the benefit Malaysian glove makers have enjoyed from low latex prices could be muted in the coming quarters, it said.
Kenanga cut the target price on Top Glove Corp Bhd to RM5.36 per share from 5.80, Supermax Corp to RM2.20 from 2.50 and Kossan Rubber Industries to RM3.38 from 3.64.
At 0947 (0147 GMT), Top Glove was down 0.77 per cent at 5.14 ringgit per share, while Kossan was untraded at RM3.04 per share and Supermax was down 0.5 per cent at RM2.
The KLSE composite index was up 0.16 per cent at 1652.36. - Reuters
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mcchia
Heavy rains are expected in the following week in thailand and because of this latex production are declining.
2012-10-04 17:47