KUALA LUMPUR (Aug 13): Yesterday’s sell-down in established rubber glove makers, in the wake of news that Russia has approved a COVID-19 vaccine, has also spilled over to companies that plan to enter the industry.

They include HLT Global Bhd, which announced an RM325 million private placement to finance the purchase of land to set up a rubber glove factory.

HLT was the ninth top loser on Bursa Malaysia yesterday, closing 51 sen or 24.76% down at RM1.55, after an intraday low of RM1.45. Its market capitalization declined to RM824.41 million, from RM1.1 billion a day earlier when the stock closed at RM2.06.

Inix Technologies Holdings Bhd was another new entrant into the glove making sector that saw its shares plunge. The company has announced that it is injecting RM22.75 million into a 65-35 rubber glove joint venture and RM35 million to acquire a factory in Seremban for its rubber glove business.

Inix saw its shares decline by as much as 33.74% yesterday before paring some of the losses to finish 19.5 sen or 23.93% lower at 62 sen, for a market capitalization of RM201.64 million.

AT Systemization Bhd, which announced plans to purchase six glove dipping lines, fell by as much as 26.92% before closing 2.5 sen or 19.23% lower at 10.5 sen. This values the company at RM217.2 million.

Titijaya Land Bhd, which has plans to venture into rubber gloves and personal protection equipment also fell yesterday. It fell by as much as 24.5 sen to an intra-day low of 44 sen, before closing with a smaller loss of four sen or 5.84% at 64.5 sen, giving it a market capitalisation of RM876.16 million.

Titijaya has announced a distribution agreement with rubber glove manufacturer Rubberex Corp Bhd to export gloves, PPE and medical products to China.

However, not all the new entrants into the rubber glove industry saw their shares pull back yesterday.

Kanger International Bhd, which has been approached by Dubai-based Constellation Holdings Ltd to set up a rubber glove business either through a joint venture or private placement, saw its shares rise by as much as 12.06% to an intra-day high of 32.5 sen. However it pared its gains to finish 1.72% or half a sen lower at 29.5 sen, for a market capitalization of RM364.4 million.

LEAP market listed CE Technology Bhd, which has announced the expansion of its raw nitrile glove and cleanroom glove capacities, finished 12.5% or 10 sen higher at 90 sen, valuing the company at RM311.5 million.

Investor interest was strong in AT and Kanger yesterday, with the former ending as the sixth most active counter and the latter in 15th position.

Existing glove makers Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Comfort Glove Bhd, Careplus Group Bhd and Rubberex Corp Bhd were all major losers on the local bourse yesterday.

The sell-down was sparked by Russian President Vladimir Putin’s announcement that the country has approved a COVID-19 vaccine, marking the first vaccine approved for use worldwide. The news does not bode well for rubber gloves demand as the discovery of the vaccine is expected to curb the spread of the global outbreak.