Glove makers gain momentum as China requests for more urgent shipments

The industry will do its utmost best to ensure adequate supplies of medical gloves to the world, according to MARGMA

By PRIYA VASU / Pic By TMR File

THE coronavirus outbreak in China that has spread across the world sent investors seeking for cover of safe-haven assets like the US dollar and gold, while stock pickers piled into healthcare-and hygiene-related stocks and out of hospitality- and gaming-related counters.

Glove makers gained as the Malaysian Rubber Glove Manufacturers Association (MARGMA) stated that the industry will do its utmost best to ensure adequate supplies of medical gloves to the world.

MARGMA president Denis Low stated in a release yesterday that China is requesting for more urgent shipments and its members have obliged by ramping up production to meet the request.

“In many other parts of the world, there is a heightened cautiousness, and healthcare officials are demanding for sufficient medicines and protective devices such as medical gloves to be made available in order to counter the coronavirus spread,” he said.

The coronavirus outbreak has increased the demand for rubber gloves on the back of increased awareness across the region to prevent cross-contamination between virus carriers and caregivers.

Top Glove Corp Bhd was actively transacted in the first day of the Chinese Year of the Rat, rising 8.3% or 46 sen to RM6 — the highest price jump in 18 months.

The world’s largest glove maker, with about 25% global market share, aims to raise RM3 billion cash from a sukuk issue to fund its capacity expansion that has also been viewed favourably by investors.

The group operates a manufacturing plant in China through Great Glove (Xinghua) Co Ltd that produces and distributes latex gloves and polyvinyl chloride gloves.

Hartalega Holdings Bhd rose to an eight-month high of RM6.25 after rising 22 sen or 3.7% yesterday.

The company, in a filing with the exchange last November, stated that its capacity expansion plans in its Next Generation Complex continue with the aim to meet the growing demand of its nitrile gloves.

The first line of its Plant 6, if scheduled to commence work in the first quarter of this year, it would enhance its capacity to produce 4.7 billion pieces of gloves annually.

The group recently introduced antimicrobial gloves in China that recorded positive market acceptance.

Likewise, Kossan Rubber Industries Bhd rose 5.3%, or 26 sen, to RM5.01, while Supermax Corp Bhd advanced the most in eight years by 15%, or 25 sen, to RM1.86 sen.

Meanwhile, Adventa Bhd’s shares were up most since its IPO in 2004, with trading volume surged more than 70 times the average as its shares increased 47%, or 28.5 sen, to 89 sen.

Comfort Gloves Bhd rose 11 sen or 12% to RM1.

ES Ceramics Technology Bhd, which manufactures and distributes ceramic hand formers for the glove industry, jumped nine sen, or 34.6%, to 35 sen with volume surged 30 times the average.

Its products include examination, surgical and household formers, and breathing bags and balloons.

In the tourism sector, the move to curtail travel within China and abroad saw stocks like Genting Bhd and AirAsia Group Bhd slump as investors see a fall in demand for services of both groups.

Genting lost 22 sen, or 3.8%, to RM5.60, while Genting Malaysia Bhd lost 11 sen, or 3.5%, to RM3.04. AirAsia fell six sen to RM1.50.