KUALA LUMPUR (July 28): Top Glove Corp Bhd and Kossan Rubber Industries Bhd shares pared gains at Bursa Malaysia's afternoon break today after rising to record highs earlier today as investors evaluated the spectre of a second wave of Covid-19 global infections.

Investors have been buying shares of rubber glove manufacturers in anticipation the Covid-19 pandemic will lead to higher demand for gloves, hence better earnings for these companies.

At 12:30pm, Top Glove's share price settled up 36 sen or 1.39% at RM26.24 after rising to an all-time high of RM26.60.

Kossan settled up four sen or 0.24% at RM16.74 after climbing to a record high of RM16.98.

Globally, it was reported today that nations in Asia imposed new restrictions while an abrupt British quarantine on travellers from Spain threw Europe's summer reopening into disarray, as the world confronted the prospect of a second wave of Covid-19 infections.

It was reported that in the US, which is still dealing with its first wave as infection rates have climbed since June, President Donald Trump's national security adviser Robert O'Brien became the most senior official to test positive. The White House said Trump had not interacted with him in days and was not at risk.

"Surges were reported in several countries that previously appeared to have the virus under control. Australia recorded a record daily rise. Vietnam was forcing tens of thousands of tourists to evacuate the central city of Danang. Mainland China, where the virus first emerged late last year, confirmed the most locally transmitted cases since early March.

"Hong Kong banned gatherings of more than two people, closed restaurant dining and made face masks mandatory in public. A surge of new infections in Spain, another early epicentre of the pandemic, prompted Britain on Saturday to order all travellers from there to quarantine for two weeks, undoing months of preparation for Europe's reopening to tourism," Reuters reported.

Bloomberg, quoting UBS Group analysts Nicole Goh and Joseph Koh as writing in a note, reported on Monday (July 27) that Southeast Asian glove makers have the ability to raise average selling prices by 15% to 70% in the third quarter of 2020 due to elevated demand.

"Hospitals also expect prices (for gloves) to be 25% higher year-on-year in the upcoming month.

"UBS maintains neutral rating on Top Glove. Sees strong near-term earnings momentum, though tight raw-material supply and new capacity could impact long-term margins," Bloomberg reported.