RUBBER GLOVE STOCKS ‘DEFLATED’
Hartalega, Supermax and Top Glove fall 2.47pc, 6.16pc and 3.15pc, respectively
THE share prices of rubber glove manufacturers Hartalega Holdings Bhd, Supermax Corp Bhd and Top Glove Corp Bhd continued to be under pressure amid profit taking by investors.
However, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said this did not come as a surprise as all three glove counters had jumped at least 10 per cent on Thursday.
Hartalega closed 25 sen, or 2.47 per cent, lower to RM9.89, Supermax eased 30 sen, or 6.16 per cent, to RM4.57 and Top Glove slipped 17 sen, or 3.15 per cent, to RM5.23 yesterday.
Bursa Malaysia’s healthcare index dropped 67.48 points, or 2.17 per cent, to 3,049.35 points.
Adam said for Top Glove, the company said it was collaborating with independent migrant worker rights specialist Andy Hall in an effort to become a leading manufacturer with the best possible environmental, social and corporate governance (ESG)
practices in the glove industry.
“Towards this end, Hall acknowledges that Top Glove has taken great strides in the advancement of migrant workers’ rights as well as in ESG initiatives.
“With Top Glove showing determination in this area, the United States Customs and Border Protection should evaluate the entry restrictions placed on Top Glove products.”
Meanwhile, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 9.85 points, or 0.6 per cent, to close at 1,612.25 yesterday, anchored by Axiata Group Bhd and Digi.Com Bhd following news of a merger between the two companies.
Axiata added 31 sen, or 8.16 per cent, to RM4.11 while Digi rose by 71 sen, or 18.93 per cent, to RM4.46 yesterday.
“The Bursa Malaysia telecommunications and media index was the biggest gainer yesterday after adding 2.18 per cent.”
Adam said the FBM KLCI was expected to trade sideways in the range of 1,590 to 1,610 points next week as the new Covid-19 wave in Europe could disrupt global economic recovery.
By comparison, most of the regional peers also ended mixed yesterday due to the unexpected rise in weekly US jobless claims, which signalled an uneven recovery in the country’s labour market.
Adam said the ringgit should also trade in a tight range of 4.13 to 4.14 against the US dollar due to a lack of big major events next week.