KUALA LUMPUR (Sept 24): Rubber glove stocks spiked again today, continuing their uptrend as global Covid-19 infections keep rising to reach 7.43 million cases as of yesterday.

Hartalega Holdings Bhd was the top gainer among its peers, rising 9.66% to close at RM15.90, followed by Kossan Rubber Industries Bhd (up 9.24%), Supermax Corp Bhd (up 7.41%) and Top Glove Corp Bhd (up 6.61%).

The rise in the glove stocks translated into a 3.98% increase in Bursa Malaysia's Healthcare index, which closed at 3,685.92. For comparison, the KLCI rose 0.29% to close at 1,500.80.

Some analysts said the rise today followed the one-month correction in the glove stocks after touching their respective peaks in early August.

JF Apex Research analyst How Chi Hoong noted that the share prices of rubber glove counters have come down significantly from their peaks, which might have played a part in the rise today, amid the continued rising Covid-19 cases around the world.

However, he told theedgemarkets.com that there were no obvious catalysts to justify the sudden rise in the stocks today.

"Besides the continued [rising] cases and some concerns over an accelerated spread of Covid-19, there was really no strong catalyst for the rise today. This may likely be a short-term rise," said How.

Another analyst also pointed out that there have been many recent reports of vaccine trials, which should be negative for rubber glove companies, although these reports seemingly have no effect on their share prices.

On the other hand, Public Investment Bank Research said in a note today that glove stocks will continue to attract trading interest "given the lack of fundamentally stronger alternatives".

Despite the recent selldown, glove makers are still very much in a positive territory on a year-to-date basis, led by Supermax, which has gained 1,110% since starting the year at 70 sen per share.

Meanwhile, Top Glove increased 446% during the same period, followed by Kossan and Hartalega, which are up 212% and 190% respectively.

In terms of market capitalisation, Top Glove is leading with RM69.52 billion, making it the second biggest component of the KLCI — and Bursa Malaysia as a whole — after Malayan Banking Bhd, which is valued at RM79.7 billion.

It is noted that Top Glove has brought forward the ex-date for its final 8.5 sen dividend to Oct 19 from Nov 17 previously, with the payment date shifted to Nov 3 from Dec 1. The group did not explain the reason behind the change and only issued an amendment to its earlier dividend announcement dated Sept 17.

Meanwhile, the Employees Provident Fund (EPF) has been increasing its stakes in rubber glove players, with the fund re-emerging as a substantial shareholder of Top Glove following the acquisition of 13.69 million shares, bringing its stake in the group to 5.051%.

EPF has also been accumulating Kossan's shares, with the fund acquiring a net 8.45 million shares since the start of September, bringing its stake to 8.093% as at Sept 18.