KUALA LUMPUR (July 6): Shares in Top Glove Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd reached new all-time highs today, buoyed by sustained demand for rubber gloves.
As of 10.07am, Top Glove was the local stock exchange’s top gainer, rising by 7.04% or RM1.30 higher to RM19.76 per share, valuing the company at some RM53.19 billion. It saw some 7.32 million shares transacted.
Meanwhile, Hartalega shares were up 4.88% or 78 sen to RM16.78, valuing the stock at some RM56.85 billion. In total, it saw some 4.05 million shares change hands.
Supermax shares were up by 6.48% or 61 sen at RM10.02 apiece, valuing the counter at some RM13.63 billion. It was a new all-time high. In total, it saw some 15.45 million shares traded.
Supermax was the fourth highest gainer on Bursa Malaysia, followed by the Supermax-C83 warrants as the fifth top gainer, gaining 6.82% or 35 sen to RM5.48.
Kossan was also on the list of top gainers as well. The counter rose by 4.29% or 40 sen apiece to RM9.72, also a new record high. It was now valued at RM12.43 billion.
Demand for rubber gloves is only expected to grow as the Covid-19 pandemic shows no signs of abating.
In a note today on rubber products, Hong Leong Investment Bank said that it was not ruling out the possibility of hastier capacity expansion by Malaysian glove manufacturers in order to fulfil increasing demand as well as to remain competitive.
“China's glove makers are aggressive with their expansion plans (about an additional 100 billion pieces by 2023). However, we feel it will not affect Malaysian glove makers in the near future, with only about 35 billion pieces by 2021 and stronger confidence in Malaysian glove production quality,” it said.
The research house added that it remained bullish on gloves for the second half of the year (2H20) given increasing demand for rubber gloves and that average selling prices (ASPs) are expected to continue rising until 1H21.
It noted that rubber glove ASPs had increased in tandem with higher utilisation rates. Since the beginning of the outbreak, ASPs have increased by about 10%. Spot order ASPs currently average at two to four times and now account for 15% to 20% of total capacity from 5% previously.