Glove Maker Supermax to Enter Malaysia’s Main Stock Index

by BLOOMBERG/  pic by BLOOMBERG

Supermax Corp. is set to join bigger rivals Top Glove Corp. and Hartalega Holdings Bhd. in the benchmark FTSE Bursa Malaysia Index, thanks to the dizzying rally in its
shares.

The rubber-glove maker will replace KLCCP Stapled Group in the 30-member gauge starting Dec. 21, the exchange and the index provider FTSE Russell said in a joint statement.

Glove makers have a combined 11% weighting in the Malaysian gauge as of Thursday’s close, according to data compiled by Bloomberg.

Glove makers have been one of the hottest pandemic trades of 2020, with their shares scaling to records as they rode on an extraordinary boom in demand for protective gear amid the coronavirus outbreak.

But those gains have come under pressure as potential Covid-19 vaccine rollouts sap their investment appeal.

Supermax has surged more than 1,100% this year and is currently the second-best performer on the MSCI Asia Pacific Index.

The stock, with a market value of 22 billion ringgit, has 11 buy ratings and zero sells among analysts tracked by Bloomberg.

Top Glove shares are up 333% this year, down from as much as 500%. Hartalega has more than doubled.

The exchange has kept another glove maker — Kossan Rubber Industries Bhd. — in its list of companies that can be added to the index if there are any exclusions before the next review in June. The stock has tripled this year.