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Photographer: Samsul Said / Bloomberg
Photographer: Samsul Said / Bloomberg
Falling Shares of Malaysian Glove Manufacturers Show Signs of Top Glove Corp. rebounded with its biggest two-day jump on record.
After a four day slump last week exacerbated by Macquarie Bank Ltd.’s downgrade of shares, the world’s largest manufacturer of rubber gloves jumped as much as 13% on Monday after a 20% gain on Friday, helped by a 200 million ringgit (48 million ringgit) stake. of dollars). repurchase. Macquarie had cited concerns about the possibility that earnings may have peaked. Hartalega Holdings Bhd. It has recovered 11% in two days, while Supermax Corp. has soared 37% in the same period to break a 45% drop in eight days.
“Concerns about a drop in average selling prices remain unwarranted at this time,” said Walter Aw, analyst at CGS-CIMB Securities Sdn. in a note dated September 11 “There are indications that ASPs may remain elevated for a longer period until by the end of 2021. The acute global glove shortage is likely to worsen as Covid-19 cases around the world show no signs of slowing down. “
Read more: Meteoric Rise in Malaysian Glove Stocks Halted by Virus Vaccine
Buoyed by a surge in demand for their products in the wake of the coronavirus pandemic, Malaysian glove makers almost single handedly fueled a rally in the country’s shares. But the meteoric rise has also led to Extreme shifts in the market, as concerns mount about valuations and the outlook for a coronavirus vaccine that could end the pandemic early.
