Blink up, blink down like my feelings of love for you - we analysts who are hopeful.
Shares of the glove maker plunged on Tuesday led by Top Glove Corp Bhd as investors took profits after concerns about the Covid-19 Omicron variant eased.
At noon, Top Glove shares closed 37 sen or 11.6% lower at RM2.82 after falling to a one -day low of RM2.78.
Hartalega Holdings Bhd also declined 39 sen or 6.09% to RM6.01 after falling to a one -day low of RM6.
Supermax Corp Bhd, Kossan Rubber Industries Bhd, Careplus Group Bhd, Comfort Gloves Bhd and Rubberex Corp (M) Bhd were among the 20 biggest losers.
Supermax fell 21 sen or 9.77% at RM1.94, Kossan fell 12 sen or 5.11% at RM2.23, Comfort Gloves Bhd lost 12 sen or 8.82% at RM1.24, Careplus declined 8 sen or 6.06% at RM1.24 and Rubberex plunged 7.5 cents or 10.49% to 64 cents.
According to Malacca Securities Bhd analyst Kenneth Leong, the decline in shares of rubber glove makers was due to profit -taking activity from 2 sessions after concerns over Omicron eased.
He added that traders may turn back to bargaining hunting for recently affected stocks.
Apart from that, he also said the downward trend for glove makers would continue due to environmental, social and governance (ESG) concerns which resulted in increased capacity from existing and new glove players as well as a declining average selling price trend.
Meanwhile, a fund chairman who declined to be named opined similarly by saying the downward trend for rubber glove makers on Tuesday was due to a reduction in initial fears of Omicron.
He added that the long -term thesis for the glove maker has not changed as it is still struggling with declining average selling prices and there are more suppliers especially in China.
Rakuten Trade head of research Kenny Yee also said the surge in glove makers on Monday was not a sudden response to the Omicron variant thus explaining today's profit -taking activity.
