This article first appeared in The Edge Financial Daily on February 4, 2020

KUALA LUMPUR: Glovemakers’ shares retreated yesterday on profit taking, following gains late last month on better prospects expected, amid the Wuhan virus outbreak.

Among the top four glovemakers on Bursa Malaysia, Hartalega Holdings Bhd shares fell 12 sen or 2.03% to RM5.80, valuing the group at RM19.6 billion.

Top Glove Corp Bhd shares fell seven sen or 1.2% to RM5.78, with a market capitalisation of RM14.8 billion.

Kossan Rubber Industries Bhd lost 10 sen or 2.04% to RM4.80 with a market capitalisation of RM6.14 billion. Supermax Corp Bhd fell five sen or 2.81% to RM1.73 with a market capitalisation of RM2.28 billion.

Year to date, the four counters are still up between 5% and 25% (see table).

Other glovemakers were also in the red yesterday. Comfort Gloves Bhd fell three sen or 3.33% to 87 sen with a market capitalisation of RM507.17 million. Careplus Group Bhd fell three sen or 9.38% to 29 sen, valuing it at RM154.09 million. Rubberex Corp (M) Bhd fell 5.5 sen or 8.66% to 58 sen, with a market capitalisation of RM146.17 million.

Glovemakers’ shares peaked last Tuesday, with several counters hitting record highs on expectations of growing demand, amid the Wuhan virus outbreak.

According to a PublicInvest research note last Wednesday, the Malaysian Rubber Glove Manufacturers Association revealed glove players have recently received urgent demand requests from China.

“Utilisation rates for glove counters under our coverage are currently running at 88% and we believe there is room for glovemakers to ramp up further to around 95%, to meet urgent shipment requests from China,” the research house said.