[ad_1]
KUALA LUMPUR (Feb 22): Glove bulls appear to be lethargic as more countries launch their Covid-19 vaccination programs. Malaysia will be the last one soon, starting next Wednesday.
Selling pressure on glove stocks mounts as domestic investors see growing optimism that the coronavirus will be more effectively contained with the availability of vaccines.
However, the recent sell-off has brought stock prices to an attractive bargain-hunting level against the target prices of most investment analysts.
At the close of the market, the Healthcare index, which tracks the share prices of pharmaceutical companies, rubber glove manufacturers and hospital operators, fell 1.51% or 52.26 points to close at 3,399.28 .
Top Glove Corp Bhd fell 27 sen or 4.46% to RM5.78, its lowest level since January 6, reducing its market capitalization to RM47.41 billion. The trading volume was 39.05 million shares.
Supermax Corp Bhd fell 4.66% or 27 sen to RM5.53 with a market value of RM15.05 billion. He saw about 19.6 million shares traded.
Hartalega Holdings Bhd, Bursa’s sixth biggest loser in terms of value, lost 42 sen or 3.48% to RM11.64 with some 4.75 million shares changing hands. This gave the group a market capitalization of RM39.9 billion.
Among other gloved players, Comfort Gloves Bhd fell as low as 18 sen or 7.03% to RM2.38; Careplus Group Bhd fell 4.9% or 10 sen to RM1.94; while Rubberex Corp (M) Bhd fell eight sen or 5.8% to RM1.30.
The first shipment of 312,390 doses of the Pfizer-BioNTech Covid-19 vaccine arrived on Sunday, as the first phase of the National Immunization Program is scheduled to begin on February 24, instead of February 26 as previously announced.
The Covid-19 immunization program has three phases, targeting 80% of the population or 26.5 million recipients who will be vaccinated for free.
Science, Technology and Innovation Minister Khairy Jamaluddin, who is also in charge of the National Immunization Program, said Prime Minister Tan Sri Muhyiddin Yassin and Health Director General Tan Sri Dr. Noor Hisham Abdullah will be among the first individuals to receive vaccines in the future. Wednesday.
Health workers and other front-line workers will be vaccinated in the first phase from February to April, followed by older people and high-risk groups in the second phase (April to August). Meanwhile, the third phase involving people over 18 will take place from May to February 2022.
In a thematic report dated February 18, MIDF Research said that sentiment towards the glove sector had changed as the development of Covid-19 vaccines progressed, however, it still maintained its positive stance on the sector as The research house believed that the growth in demand for gloves will continue after the pandemic.
MIDF also maintained its “buy” recommendations on the four companies under its coverage, namely Hartalega with a target price (TP) of RM18.25, Top Glove (TP: RM8.29), Kossan Rubber Industries Bhd (TP: RM7.33) and Supermax (TP: RM13.83).
“Malaysia supplies about 65% of the world’s total rubber gloves, which means that, collectively, Malaysian glove companies have advantages as market leaders,” MIDF said.
The research house said a notable growth driver in demand for rubber gloves is increased hygiene awareness in developing nations, while in developed countries, demand is driven by stricter medical processes, a population aging leading to increased medical needs as well as consumption. in other service sectors.
“Glove consumption is expected to remain high in 2021. We believe that massive and random testing will continue until a large population is vaccinated.
“This is especially true if economies, social activities and schools are going to reopen while remaining safe. For example, in the US, $ 50 billion has been allocated to expand testing to buy rapid tests and increase laboratory capacity to support regular testing in schools so they can reopen safely, “he said.
That said, MIDF added that industry players are also expecting high demand for rubber gloves due to the massive rollout of vaccination programs.
“On top of that, buyers may need a few more months to rebuild their inventory level. According to MARGMA (Malaysian Rubber Glove Manufacturers Association), the demand for gloves is expected to grow 15-20% annually. in the future. Before the pandemic, the demand for gloves was growing between 8% and 12% annually, “he said.
[ad_2]
