KUALA LUMPUR (Jan 20): Glove makers rebounded this morning as buying interest returned following the enforcement of the movement control order (MCO) in six more states in Malaysia as the number of coronavirus cases showed increasing trends.
The share price of Top Glove Corp Bhd, the world’ largest glove manufacturer, surged as much as 2.45% or 15 sen to RM6.28, before paring some gains at RM6.21 with 7.82 million shares traded at 11am for a market capitalisation of RM50.93 billion.
Top Glove shares rebounded today after declining for two consecutive trading days, following news of the group’s workers across four factories in Port Dickson, Sungai Puloh, Kulim and Shah Alam having tested positive for Covid-19 last Saturday (Jan 16).
Previously, RHB Research said in a note dated Jan 18 that Top Glove shares are trading at an unprecedented low price-to-earnings ratio (PER) of 4.9 times based on estimated earnings for the current financial year ending Aug 31, 2021, and deemed the selling of the stock to be overdone.
Similarly, shares of Supermax Corp Bhd — which fell for the past two straight days to RM6.34 yesterday from RM6.70 on Jan 15 — also rebounded to RM6.38 after 7.61 million shares were transacted. Earlier, the counter surged as much as 3.47% or 22 sen to RM6.56. At the current price, it has a market value of RM17.36 billion.
Kossan Rubber Industries Bhd, which saw its share price continuously headed south in the past five trading days from RM4.56 on Jan 12 to RM4.07 yesterday, also followed its peers' upward momentum today as its share price rose 0.74% or three sen to RM4.10, giving it a market capitalisation of RM10.49 billion The stock saw 2.63 million shares traded.
The buying interest also spilt over to Hartalega Holdings Bhd as its share price rose 0.16% or two sen to RM12.22 — after gaining as much as 2.13% or 26 sen to RM12.40 from the earlier session — bringing it a market capitalisation of RM41.89 billion. There were 1.44 million shares traded. Prior to this, the stock closed down 1.29% or 16 sen at RM12.20 yesterday from RM12.36 in the previous session.
RHB Investment Bank Bhd yesterday maintained its “buy” rating of Hartalega at RM12.36 with a target price of RM23.50, and said it expects Hartalega’s earnings for the third quarter ended Dec 31, 2020 (3QFY21) to surge 643% year-on-year and 65% quarter-on-quarter (q-o-q) to RM900 million.
In a note, RHB’s Alan Lim said this was driven by an average selling price increase estimated at 50% q-o-q.
"On top of superb earnings, we like Hartalega for its gold standard in Covid-19 prevention among its workers," he said.
Yesterday, Senior Minister (Security Cluster) Ismail Sabri Yaakob announced six more states, namely Kedah, Perak, Negeri Sembilan, Pahang, Terengganu and Perlis, will be placed under the MCO starting Jan 22 (Friday) until Feb 4, 2021.
Following this, all Malaysian states, excluding Sarawak, will be undergoing the MCO.
Malaysia recorded a total of 3,631 new Covid-19 cases yesterday, marking the sixth straight day of over 3,000 infections. The total number of infections now stands at 165,371, with a death toll of 619.