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KUALA LUMPUR (Oct 21): The craze for rubber glove stocks has yet to fade. The proof of this is that the big four glove manufacturers, namely Top Glove Corp Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd, are among the 30 most important stocks in terms of market capitalization in Bursa. Malaysia.
The big four rubber glove accountants together have earned about RM147.42 billion in market capitalization. This equates to 36% of the total increase in the market capitalization of all stocks listed on Bursa Malaysia.
The increase in demand for rubber gloves as a result of the Covid-19 pandemic has translated into exorbitant profits. Never before have glove manufacturers made so much profit.
Glove manufacturers succumbed to a heavy sell-off in August and the first half of September. Just when some quarters thought the party was over, their stock prices just rallied and they recouped most of the losses.
The world’s largest rubber glove maker Top Glove now has just 34 sen or a market capitalization of RM2.76 billion to become Malaysia’s largest counter, based on the closing price on October 19.
Top Glove soared 409% to RM9.60 yesterday, valuing the company at RM78.17 billion, while Hartalega was up 210% to settle at RM19, bringing its market capitalization to RM65.12 billion.
Supermax seems to be winning the race between the four. Its share price jumped more than 14 times, or 1,336%, to close at RM10.70, while Kossan jumped 248% to RM8.13.
Both Supermax and Kossan joined the ranks of Bursa’s 30 largest accountants in July. As a result, Maybank IB Research analyst Wong Chew Hann anticipates that the duo may convert to the 30-component shares after the revision in November or December, if their current rankings are maintained.
Supermax is now the 16th largest counter in Bursa with a market capitalization of RM27.49 billion, from 124th earlier this year, while Kossan (valued at RM20.8 billion) has risen to 23rd from the 62.
Among the smaller rubber glove manufacturers, Comfort Gloves Bhd, Rubberex Corp (M) Bhd and Careplus Group Bhd, have also enjoyed astronomical gains.
During the seven-month period, Comfort Gloves grew 677% to RM5.08 (valued at RM2.96 billion), while Rubberex jumped 1,223% to RM2.95 (valued at RM2.36 billion) and Careplus increased 1.880 % to RM4. 04 (valued at RM 2.18 billion).
As their share prices have soared multiple times, these three rubber glove manufacturers are now valued at more than RM2 billion. This contrasts with its market capitalization of between RM100 million and RM361 million during the March share crash.
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