Oversold rebound of glove stocks provides good chance to trim positions, says HLIB

Oversold rebound of glove stocks provides good chance to trim positions, says HLIB
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KUALA LUMPUR (Aug 17): Hong Leong Investment Bank Research has maintained its “underweight” rating of the glove sector, and said a further oversold rebound of glove stocks may provide a good opportunity to trim positions in the stocks.

In a traders’ brief on Wednesday (Aug 17), the research house said that glove makers are still bracing for industry-wide headwinds caused by an acute oversupply and margin compression, due to falling average selling prices.

“We maintain 'underweight' on the glove sector, with 'sell' ratings for Top Glove Corp Bhd (target price: 83 sen) and Hartalega Holdings Bhd (RM1.92), and a 'hold' rating for Kossan Rubber Industries Bhd (RM1.44),” it said.