News of new sanctions in China and the presence of Omicron sub-variant, BA.5 in the country has sparked risk-off sentiment in the market, yet it has also given a boost to health-themed stocks.
A string of that, shares of rubber gloves in local companies showed an increase in the trading session in mid-morning Tuesday.
Looking at the Bursa Malaysia index board,
Top Glove Corp Bhd rose 3.03% or 3 sen to RM1.02.
Supermax Corp Bhd added 1.21% or 1 sen to 83.5 sen.
Careplus Group Bhd gained 4.71% or 2 sen at 44.5 sen.
Hartalega Holdings Bhd gained 1.91% or 5 sen at RM2.67.
Kossan Rubber Industries Bhd jumped 2.34% or 3 sen to RM1.31.
The situation in China is said to have returned murky as local governments re-implemented strict movement restrictions, following a ‘zero COVID-19’ policy, with Shanghai’s commercial hub preparing to conduct large-scale tests.
It is understood that the decision was reached after there were reports of several cities recording cases of the Omicron sub-variant last weekend.
In general, this action will have a deeper impact on the economy of the world's 2nd largest country after the occurrence of global supply disruptions and international trade.
Turning to the local region, Health Minister Khairy Jamaluddin noted the presence of cases involving the Omicron BA.5 sub-variant at a special press conference speech last week.
He further said during the press conference that there is a high possibility that BA.5 has spread in Malaysia.
This also indirectly strengthens the ministry's expectation that there will be an increase in cases in the country in the next few weeks.
