Rubber glove counters jump as investors look for defensive stocks

Rubber glove counters jump as investors look for defensive stocks
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KUALA LUMPUR (Dec 22): Rubber glove maker counters jumped in the morning trade today as the current economic uncertainty prompted investors to park their money in the defensive stocks.

At 11.07am, Top Glove Corp Bhd rose as much as 30 sen or 2.22% to trade at RM13.82, making it the fourth-largest gainer on Bursa Malaysia.

Trading volume stood at 978,400 shares. At RM13.82, it has a market capitalisation of RM8.62 billion.

It was followed by Kossan Rubber Industries Bhd. The stock gained 19 sen or 2.06% to trade at RM9.24 as at 11.07am, valuing it at RM6.01 billion.

Kossan was the seven-largest gainer across the exchange albeit with a thin trading volume of 98,800 shares.

Supermax Corp Bhd climbed 12 sen or 3.72% to RM3.35, after 45.88 million shares were traded, making it the tenth top gainer across the bourse.

The current price gave it a market capitalisation of RM2.25 billion.

Hartalega Holdings Bhd, which was among the top 20 gainers, was up 11 sen or 1.88% to trade at RM5.95 with a trading volume of 62,800 shares.

Commenting on this, an analyst with a local brokerage house said the gain in Top Glove would probably be due to the stronger US dollar, which will boost Top Glove's earnings.

At the point of writing, the US dollar gained 0.09% to 4.2985 against the ringgit compared to yesterday's close of 4.2945.

In term of price to earnings ratio (P/E), the analyst said Supermax and Kossan are trading at an undemanding P/E compared to their peers.

"Investors are also starting to look at the value in Supermax after the group posted stronger results in its latest quarterly earnings," he said.

He also pointed out investors are also putting their money into defensive stocks under the current economic uncertainties.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)