[ad_1]
KUALA LUMPUR (Nov 10): While the world is celebrating Pfizer’s overnight announcement of a viable Covid-19 vaccine candidate, rubber glove stocks may not be part of the party.
Glove counters top the losers list after the morning bell today.
At 10:20 a.m., rubber glove counter stocks were among Bursa Malaysia’s top losers. Hartalega Holdings Bhd fell 8.54% or CU1.54 to CU16.60, making it the top value loser in Bursa, followed by Supermax Corp Bhd, which was down 75 sen or 7.79% to 8 .88 um
In third place was Kossan Rubber Industries Bhd, which posted a solid set of quarterly earnings yesterday, falling 63 sen or 8.27% to RM6.88, valuing it at RM17.59 billion.
Top Glove Corp Bhd ranked fifth, falling 54 sen or 6.37% to RM7.94.
The smaller players were not spared from the selling pressure. Comfort Gloves Bhd fell 31 sen or 6.97% to RM4.14, Careplus Group Bhd lost 27 sen or 7.8% to RM3.19, and Rubberex Corp (M) Bhd lost 16 sen or 6.45% to RM2, 32.
The health index was dragged down by gloves stocks, falling 1.78% or 73.47 points to 4,048.89.
Still, while there was a sell-off in rubber glove stocks, shares in companies that the government turned to to bottle and distribute a potential Covid-19 vaccine were on the rise.
In a note this morning, AmInvestment Bank Research reiterated its view that the market will continue to shift from predominantly pandemic-themed works to a recovery-focused theme in December.
“We have been advocating for investors to lighten their positions in the ‘pandemic game’, that is, glove stocks, and replace them with the ‘recovery game’.
“With the latest positive news coming in quite abruptly, we expect volatility as glove stock investors rush out at the same time. The two FBM KLCI-weighted glove stocks, namely Top Glove and Hartalega, have a combined weighting of 13% to 14%, ”AmInvestment Bank wrote in the strategy note.
After downgrading the glove sector to “neutral” on August 25, 2020 from “overweight” on positive news of a vaccine, AmInvestment Bank was putting fair values (FV) for glove stocks under its hedge under biased review. negative.
Still, he expects the gains tied to the recovery plays to be significantly offset by the losses seen from the pandemic plays, allowing him to maintain his end-2020 KLCI goal of 1,530 points despite the overwhelming good news.
In summary, Pfizer and its German partner BioNTech announced last night that their experimental Covid-19 vaccine was more than 90% effective without serious safety concerns based on initial trial results, estimating that they can implement up to 50 million doses this year. for 25 million people and will produce 1.3 billion doses in 2021.
Read also:
Vaccine news closes rally of new entrants in the glove industry
[ad_2]
