PETALING JAYA: Glove stocks surged to Bursa Malaysia’s top five gainers list today on China coronavirus outbreak concerns, while other healthcare and medical-related stocks also saw a spike in investor interest as the world takes measures to contain the spread of the deadly virus.
The top five gainers were Top Glove Corp Bhd (8.3%), Adventa Bhd (47.11%), Kossan Rubber Industries Bhd (5.47%), Supermax Corp Bhd (15.53%) and Hartalega Holdings Bhd (3.65%).
Top Glove ended trading 46 sen higher at RM6, Adventa 28.5 sen higher at 89 sen and Kossan 26 sen up to RM5.01. Supermax saw an increase of 25 sen to close at RM1.86, while Hartalega gained 22 sen to RM6.25.
Non-woven manufacturer Oceancash Pacific Bhd, whose products are widely used in the disposable hygienic products industry, was the sixth top gainer, closing 21.5 sen or 41.35% higher at 73.5 sen. It had earlier hit a high of 82 sen.
Other glove players such as Rubberex Corp (M) Bhd, Careplus Group Bhd and Comfort Gloves Bhd also made it to the top 20 gainers list.
Pharmaceutical company Pharmaniaga Bhd, too, made gains, closing 11 sen higher at RM2.19, while healthcare group IHH Healthcare Bhd closed at RM5.89, up 10 sen or 1.73%.
Industrial chemical supplier Luxchem Corp Bhd, which specialises in latex chemicals, was the 16th highest gainer on Bursa.
“Rubber glove-related stocks should continue to attract more buying interest due to higher demand if this outbreak is prolonged and turns into a global pandemic,” said TA Research.
Before the opening bell on Bursa today, Rakuten Trade said it was not going to be an auspicious start for regional stock markets, as concerns over the spread of the Wuhan coronavirus sent investors scurrying for cover with many unloading their positions on the New York Stock Exchange on Monday, pushing the Dow Jones Industrial Average 420 points lower.
It said crude oil prices also retreated citing the virus may impact negatively on demand with Brent crude crashing through the US$60 a barrel level to close at US$58.58.
“Looking at a plethora of adverse developments, we believe trading on the local bourse would be muted with the FBM KLCI facing some downward pressure with support seen at 1,560 on Tuesday.”
Malaysian Rubber Glove Manufacturers Association president Denis Low reiterated that the Malaysian rubber glove industry will do its best to ensure global demand for medical gloves is met.
