Healthcare, glove-related stocks surge


THE resurgence in Covid-19 case numbers is attracting fresh money flows into healthcare counters with glovemakers among the most active and top gainers in the market.

Renewed investors’ interest in counters like HLT Global Bhd, Notion VTec Bhd, Careplus Group Bhd, LKL International Bhd, Comfort Gloves Bhd, K-One Technology Bhd, Luxchem Corp Bhd, Bintai Kinden Corp Bhd, Kanger International Bhd and MQ Technology Bhd raised the total market volume to seven billion securities traded yesterday.

Shares of smaller glovemakers like Comfort Gloves, Rubberex Corp (M) Bhd and Careplus made solid gains in the past three trading days compared to the big glovemakers like Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd.

“I believe the deviation of the share price performance of these small glove players with big four glovemakers is partly because the smaller market capitalisation stocks are being easily targeted and manipulated by ‘punters’ compared to the big glovemakers,” JF Apex Securities Bhd research analyst How Chi Hoong told The Malaysian Reserve in a brief reply yesterday.

The smaller glovemakers are more volatile and have diverged from their fair value,

How added. “My near-term outlook for the smaller glove players is still neutral. I expect their upcoming earnings would be inferior compared to the big four,” How said.

The share prices of Rubberex Corp rose by 62 sen yesterday to RM8.02, Comfort Gloves up 31 sen to RM4.70 and Careplus increased 20 sen to RM3.92. Top Glove gained 39 sen to RM9.48, while Supermax rose 46 sen to RM10.64. Kossan Rubber increased 47 sen to RM7.98 and Hartalega up 58 sen to RM18.16 sen.

The share price gains of glovemakers in the past few weeks made Top Glove the second most valuable counter on the local exchange with a market capitalisation of RM74 billion and Hartalega the fourth-largest with a market capitalisation of RM60.3 billion.

Malacca Securities Sdn Bhd continues to like the healthcare sector as the progress for a vaccine development remains clouded by uncertainties.

“The construction sector is also picking pace as we approach the Budget 2021, which we may anticipate several mega-infrastructure projects being tabled,” the research firm said in a note yesterday.