September 27, 2021

Glove Maker Shares Remain Sinking At The Bottom Of The Ocean

 Glove maker shares were among the most losers traded at the start of trading this week as investors remained wary of weak growth prospects.

During the midday break, the share prices of Supermax Corp Bhd and Top Glove fell 10 sen each to RM2.22 and RM2.65, which was the lowest level in 16 months.

Apart from that, Kossan Rubber Industries Bhd contracted seven sen to RM2.24 while Hartalega Holdings Bhd declined three sen to RM5.50.

The decline in Kossan and Hartalega share prices has also seen a plunge to the lowest level ever reached in 21 months.

Rakuten vice president of Trade Research Thong Pak Leng said most investors issued expectations that the average selling price (ASP) of gloves would drop lower.

At the same time, investors also expect glove makers ’profits to likely sink faster than expected in the coming quarters.

Rakuten’s Head of Trade Research, Kenny Yee added that the glove -making industry will also experience slower growth prospects.

He also reported that the downtrend is expected to continue on deck due to weaker sentiment in the sector.