Glove stocks among Bursa's top active counters as most rebound

Glove stocks among Bursa's top active counters as most rebound

KUALA LUMPUR (Aug 16): The big four glove counters, namely Top Glove Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd and Supermax Holdings Bhd were among Bursa Malaysia’s most active counters on Tuesday (Aug 16).

All except Hartalega, which topped the actives list but slumped for the fifth straight session, saw their share prices climb.

When contacted, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the share price climb is a technical rebound as glove stocks have been oversold.

But Thong expects the rebound to be short-lived as glove makers are still bracing for industry-wide headwinds caused by an acute oversupply and margin compression due to falling selling prices.

Hartalega fell nine sen or 4.84% to RM1.77 on Tuesday — its lowest in about six years since September 2016 — after some 197.09 million shares were transacted, giving it a market capitalisation of RM6.17 billion. It has lost RM1.03 or 37% since last Tuesday (Aug 9), when it closed at RM2.80. Year to date (YTD), Hartalega has fallen 69% from its closing price of RM5.73 at end-December last year.

Top Glove, the second most actively traded stock of the day that saw 143.96 million shares done, snapped its seven-day losing streak to close four sen or 5.03% higher at 83.5 sen, giving it a market value of RM6.94 billion. But YTD, Top Glove has lost 68% from its end-2021 closing price of RM2.59.  

Similarly, Kossan and Supermax rebounded. Kossan climbed 2.5 sen or 2.54% to settle at RM1.01, for a market capitalisation of RM2.58 billion, after 53.26 million shares were traded. It was the fifth most actively traded counter of the day.

Supermax, which was the 21st most actively traded stock, climbed two sen or 2.65% higher to settle at 77.5 sen for a market capitalisation of RM2.1 billion. It saw 20.98 million shares traded.

YTD, Kossan has dropped 47% from when it was trading at RM1.92, while Supermax has lost 90% from RM1.47.

Their smaller counterparts also gained.

Rubberex Corp Bhd rose 0.5 sen or 1.08% to settle at 47 sen, for a market capitalisation of RM430 million, while Comfort Gloves Bhd ended the session 0.5 sen or 1.04% higher at 48.5 sen, bringing its market value of RM283 million. Careplus Group Bhd closed one sen or 2.82% higher at 36.5 sen, valuing it at RM209 million.

http://www.theedgemarkets.com/article/glove-stocks-among-bursas-top-active-counters-most-rebound