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Glove Stock Valuations Hit Rock Bottom After $5 Billion Rout

(Bloomberg) A rout in Malaysian glove makers is deepening, sending valuations for some companies to rock-bottom levels.Top Glove Corp., the world’s biggest, slid 7.8% in a fifth day of declines Wednesday, taking its February loss to 22%, set to be the worst for any month on record. The stock is trading at about 6 times 12-month forward earnings, from a record high of 43 times in May. Supermax Corp., which surged 784% last year, is down 26% this month and trades at 4.6 times.More than $6 billion in market value has evaporated in February alone for Malaysia’s top four glove makers as global vaccine rollouts accelerate and short sellers swarm these pandemic winners. Malaysia is starting its own Covid-19 vaccination campaign Wednesday, further dampening sentiment.“There is a narrative around ‘re-opening’ which has definitely impacted sentiment,” said Ross Cameron, a Tokyo-based fund manager of Northcape Capital Ltd., who has been investing in glo ....

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Average selling prices for rubber gloves to taper off in first half of 2021, says Ambank Research | Money


Wednesday, 13 Jan 2021 11:35 AM MYT
The investment bank said while it believes that glove makers’ fundamentals remain steady for the next few years, they offer limited upside at their current share prices. Reuters pic
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KUALA LUMPUR, Jan 13 AmInvestment Bank Bhd foresees the average selling prices (ASP) for rubber gloves to decline as there is no longer a rush for gloves compared to what happened at the beginning of the pandemic.
Nonetheless, it expects the ASP will stabilise at a higher level than the pre-pandemic level due to the broader usage of gloves. Moreover, capacity expansion from glove companies will be able to cope with the future demand. ....

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Glove stocks weigh on KLCI, tech stocks climb


KUALA LUMPUR: Glove makers weighed on Bursa Malaysia on Thursday as investors took profit after the rebound and piled into semiconductor and tech-related counters.
At 5pm, the FBM KLCI was down 0.98 point or 0.06% to 1,635.71. Turnover was 6.49 billion shares valued at RM4.86bil. There were 584 gainers, 583 losers and 430 counters unchanged.
In a recent report, AmInvestment Research said while demand for gloves will likely remain stable post-Covid-19, the average selling prices (ASPs) of the product are expected to ease in the second half of 2021.
fell 70 sen to RM12.30, Supermax 47 sen to RM6.64 and Top Glove 26 sen to RM6.37 and their declines weighed on the 30-stock KLCI. ....

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