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KUALA LUMPUR (Oct 21): Glove stocks dominated the list of top losers today as investors turned a profit following the recent rally and new progress in developing a vaccine for Covid-19.
Hartalega Holdings Bhd, Supermax Corp Bhd, Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Comfort Gloves Bhd were among today’s top 10 losers.
During the day, Hartalega fell to 7.37% or RM1.40 to RM17.60, Supermax fell to 8.31% or 79 sen to RM9.51, Top Glove fell to 10.36% or 89 sen to RM8.59, Kossan fell as much as 65 sen or 8% at RM7.48, and Comfort Gloves decreased by 44 sen or 9.02% at RM4.88.
Investors are benefiting from the vaccine news. But this is a short-term move, ”Areca Capital Sdn Bhd Chief Executive Officer (CEO) Danny Wong Teck Meng said when contacted.
“Its foundations remain intact. They can generate profits and dividends. the [share] prices are still decent, we still hold them, ”he said.
Meanwhile, Phillip Capital Management Sdn Bhd’s chief investment officer, Ang Kok Heng, also told theedgemarkets.com that the profit-taking was not surprising as glove stocks had performed very well recently.
However, as new boxes of Covid-19 globally remained high and demand for gloves remained strong, it remained positive about the glove sector’s medium-term outlook.
On the other hand, MIDF Research analyst Ng Bei Shan also said in a note today that it is still too early to conclude that the discovery of a vaccine could negatively affect the average selling prices (ASP) of gloves.
Recall that the flow of news about vaccine development had clouded the performance of glove stocks. We believe that the demand for gloves should remain high due to the massive administration of the required vaccine, ”he said.
US drug company Eli Lilly said earlier this month that it was pausing the registration of its antibody treatment. Separately, Johnson & Johnson (J&J) said it was stopping all trials of its experimental Covid-19 vaccine after a participant developed an adverse reaction.
In September, AstraZeneca, which works with the University of Oxford, stopped its vaccine trials, but has since resumed trials.
Meanwhile, China is reported to have promised that Malaysia, Thailand, Cambodia and Laos will be among the “priority” recipients of Chinese vaccines.
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