KUALA LUMPUR (July 10): Luxchem Corp Bhd shares surged as much as 16.78% today as the bullish sentiment from glove stocks spilled over to the counter.

Luxchem is seen as one of the chemical suppliers that could benefit from the higher demand for gloves due to the COVID-19 pandemic.

As shares of the major glove makers surged to another record high today, Luxchem too attracted strong buying interest.

At 4.30pm, the stock pared some of its earlier gain to trade at 80.5 sen, up 12.59% or 9 sen compared with yesterday’s close.

Some 69.84 million Luxchem shares changed hands, about 10 times higher than its 200-day average trading volume of 6.45 million shares.

Year to date, the stock is up 72%. It reached an all-time high of 99 sen on June 1.

According to Bloomberg data, analysts covering the stock had downgraded their recommendation in view of its rich valuation.

RHB Research analyst Chiong Tong Chai, who previously issued a “buy” call on the counter, has downgraded his call to “neutral” but maintained his target price of 65 sen.

There are currently one “neutral” and one “sell” call on Luxchem with a 12-month average target price of 62 sen.