KUALA LUMPUR (June 16): The glove bulls were charging ahead again just when some investors were pondering if the rally was losing steam given the fierce selldown yesterday.

Comfort Gloves Bhd was leading the pack. Its share price climbed nearly 11% or 28 sen to RM2.85. Careplus Group Bhd leapt 7.87% or 10 sen to RM1.37, while Supermax Corp Bhd jumped 6.55% or 45 sen to RM7.32.

Big boy Top Glove Corp Bhd was the top gainer on the FBM KLCI, gaining 5% or 76 sen to RM15.96, while Hartalega Holdings Bhd grew 3.08% or 36 sen to RM12.04, while Kossan Rubber Industries Bhd was marginally higher by gaining 0.49% or four sen to RM8.23. (see chart)

The renewed buying interest in glove makers helped lend support to Bursa Malaysia Healthcare Index, which emerged as the second-biggest best-performing index among the other sector indices and was up 68.3 points or 3.09% to 2,276.4 points.

Affin Hwang Investment Bank Bhd analyst Ng Chi Hoong said the research firm still has a positive view on the sector, as he believes that earnings for the sector have yet to peak.

"We are expecting higher earnings (net profit) in the second half of 2020, as selling prices continue to be on the rise," Ng told theedgemarkets.com.

Moreover, Ng believes that demand will remain robust, given that new cases of Covid-19 are still on the rising trend.

"Apart from that, as more economic activities open up in the world, it also helps to drive demand for gloves for the usage in the non-medical segments, like retail, F&B (food and beverages), among others," said Ng.

Until there is an effective vaccine that is publicly available, he does not foresee a drop in demand for gloves just yet.

TA Securities Holdings Bhd technical analyst Stephen Soo concurred with the bullish view. He believes that buying interest in glove counters will remain keen as concerns over the second wave of Covid-19 infection heightens.

Also, Soo described the correction in the market seen in the last two days as "a blessing in disguise" after the strong rally.