Glove shares fall after opening up as record high Covid-19 numbers drive sentiment

Glove shares fall after opening up as record high Covid-19 numbers drive sentiment
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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.

According to RHB Research, Supermax witnessed a strong uptrend reversal as it breached the 21-day average of closing prices on the surge in trading volume.

The research house noted a bullish bias was found above the RM3.38 resistance turned support level, and said if the price remains above RM3.38, the bullish momentum may push it towards the resistance level of RM3.76, followed by the RM4.00 psychological barrier.

However, if Supermax falls below RM3.26 support level, this will erase all gains.

Meanwhile, HLIB Research said a breakout above the downtrend line at RM4.13 will push Top Glove share price higher to RM4.26-4.58 levels, thanks to bottoming up technicals. Meanwhile, its support level is at RM3.64-3.85.

"Despite the oversold relief rebound yesterday, the bears could still continue to control the market as long as the benchmark fails to clear above the key resistances situated at 1,526-1,545-1,556 levels successfully, in wake of the economic and corporate earnings risks amid the heightened Covid-19 situation.

"Nevertheless, significant fall is likely to be cushioned near 1,490-1,500 levels by the progressive vaccination roll-outs, and about 12.8% of the nation's population were now fully inoculated with two doses (vs 4.4% a month ago). If the current pace persists, Malaysia is on track to achieve the herd immunity target at 80% of the population by end-2021," said HLIB Research.

Yesterday (July 15), Health director-general Tan Sri Dr Noor Hisham Abdullah said in a statement that Malaysia's daily number of newly confirmed Covid-19 cases rose to a record high of 13,215, from 11,618 reported on Wednesday (July 14).

Active cases shot up to 108,369, while total cases rose to 880,782.

Lam Jian Wyn