Glove shares up as Covid-19 resurgence concerns linger

KUALA LUMPUR (April 16): Glove shares continued to dominate the gainers list this morning as Covid-19 resurgence concerns linger.

At 10.01am, Supermax Corp Bhd rose 23 sen or 4.51% to RM5.33. It was the second top gainer this morning.

Its peers Top Glove Corp Bhd, Comfort Gloves Bhd, Rubberex Corp (M) Bhd and Kossan Rubber Industries Bhd were also among the top 30 gainers.

Top Glove gained 12 sen or 2.21% to RM5.56; Comfort Gloves advanced 16 sen or 6.02% to RM2.82; Rubberex grew 14 sen or 10.22% to RM1.51; Kossan increased by seven sen or 1.84% to RM3.87. Hartalega Holdings Bhd rose six sen to RM10.06.

TA Securities said in a note today, healthcare stocks led by rubber glove manufacturers surged on Thursday, with the sector index up a robust 3.3%, sparked by fears another aggressive wave of Covid-19 cases worldwide may force more rolling lockdowns in global hotspots.

“Healthcare, especially top rubber glove makers such as Top Glove, Supermax, Hartalega and Kossan should continue to outperform the broader market and attract bargain hunters, with the global resurgence in Covid-19 cases to cement strong demand for their products given the threat of exponential infections from more virulent strains,” it said.

Meanwhile, RHB Research Institute said in a note today that Supermax exhibited signs of extending the recent rebound after it broke off its resistance of RM5.04, with a spike in volume yesterday.

“If it manages to stay above the resistance-turned-support level of RM5.04, the bullish momentum may drive it towards the next resistance level of RM5.38, followed by RM5.82. Meanwhile, if the support level of RM4.45 is broken, this expectation would be cancelled,” it added.