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KUALA LUMPUR (July 16): Share prices of rubber glove manufacturers Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd erased gains after opening higher today on profit taking as investors continue to weigh Malaysia s record high daily numbers of new Covid-19 cases.
At the time of writing today, Hartalega s share price fell 21 sen or 2.75% to RM7.43, Supermax shed eight sen or 2.29% to RM3.42 while Kossan was nine sen or 2.74% lower at RM3.19. Top Glove Corp Bhd fell three sen or 0.74% to RM4.01.
Earlier at 9am today, Hartalega s share price opened up five sen or 0.65% at RM7.69, Top Glove rose five sen or 1.24% to RM4.09, Kossan added four sen or 1.22% to RM3.32 while Supermax was four sen or 1.14% higher at RM3.54.
KUALA LUMPUR (July 7): Glove manufacturers have suspended their operations in Klang due to the Enhanced Movement Control Order (EMCO) in several districts in Selangor.
Top Glove Corp Bhd, the world s largest glove manufacturer, said it is temporarily halting the operations of its medical glove factories in Klang, in compliance with EMCO directives.
It added that it is awaiting clarification from the National Security Council on the matter, but did not give further details. The company looks forward to safely resuming operations at the appropriate time and continuing to produce its much needed medical gloves for frontliners and healthcare workers in Malaysia and globally.
KUALA LUMPUR (July 2): Maybank Investment Bank Bhd (Maybank IB) said today the best is over for the Malaysian rubber glove manufacturing sector as average selling prices (ASPs) had peaked in the first half of 2021 (1H21) amid moderating demand for gloves on rising Covid-19 vaccination rates.
Maybank IB analyst Wong Wei Sum wrote in a note today that the glove sector’s earnings upcycle seems to have been cut short in anticipation of a faster-than-expected decline in glove ASPs in 2H21. The glove sector is entering a phase of declining ASP (and hence profit) trend on increased supply and rising vaccination rates. Competition is intensifying among both existing and new entrants.
After recording rapid profit growth in the past few quarters, Top Glove Corporation Bhd's earnings could have peaked in the March-May quarter but would start declining thereafter amid lower glove prices, said analysts. Rakuten Trade Research's head of equity sales Vincent Lau said it is also possible that the world's biggest rubber glove maker may report flat earnings growth for the third quarter ended May 31, 2021 (3QFY21) compared with the preceding quarter.