KUALA LUMPUR (Sept 25): Hartalega Holdings Bhd and Kossan Rubber Industries Bhd rose more than 6% among Bursa Malaysia top gainers in morning trades today due to the rising number of global Covid-19 cases and as investors weighed the impact of a weaker ringgit on export-based rubber glove manufacturers' earnings.

At 11:23am, Hartalega rose 96 sen or 6.04% to RM16.86 while Kossan climbed 90 sen or 6.92% to RM13.90.

The rising number of global Covid-19 infections leads to expectations of higher demand for rubber gloves to curb the spread of the outbreak.

As rubber glove manufacturers sell their products in US dollar, a weaker ringgit means these companies are expected to register higher income in ringgit terms upon conversion of the US dollar-denominated sales proceeds.

Europe has been closely watched due to the rising number of Covid-19 infections in the region.

It was reported that a surge in Covid-19 cases in Europe risks becoming a deadly double epidemic of flu and coronavirus infections, EU health officials warned.

"Spain's cumulative tally of confirmed coronavirus infections passed 700,000 on Thursday and authorities warned of tougher times ahead in the virus hotspot of Madrid.

"The number of people hospitalised in France for Covid-19 went above 6,000 for the first time in more than two months and the prime minister warned that the government could be forced to reconfine areas," Reuters reported.

At a glance, the ringgit has weakened against the US dollar in the past one week.

Today, the ringgit was traded at 4.1675 versus the US dollar at 11:47am. Last Friday (Sept 18), the exchange rate was 4.1135.

Yesterday, Public Investment Bank Bhd's research team wrote in a note that sector-wise, a global economic recovery, albeit tepid, and by extension, consumption, will be a boon to the manufacturing sector, aided in part by the relatively weaker ringgit.

"The furniture sector is a proxy to stronger US consumption spending. Gloves have been sold down recently, but will continue to attract trading interest owing to lack of fundamentally-stronger alternatives," the team said.