Glove makers in focus on virus outbreak

KUALA LUMPUR: Glove makers rose in active trade early Tuesday on concerns after the World Health Organisation (WHO) confirmed a new virus outbreak in Wuhan, China which is a strain of coronavirus.

At 9.17am, the FBM KLCI was up 1.95 points or 0.12% to 1,590.83. Turnover was 282.12 million shares valued at RM135.43mil. There were 206 gainers, 120 losers and 216 counters unchanged.

Reuters reported Asian shares got off to a cautious start lacking any lead from Wall Street and after the IMF shaved its outlook for world growth this year, though it did offer a brighter view on China.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.04%. Japan’s Nikkei slipped 0.1% and South Korea 0.04%. E-Mini futures for the S&P 500 eased 0.05%.

At Bursa on Monday, foreign funds turned net sellers at -RM47.5mil and retail investors at -RM11.9mil while local institutions were net buyers at RM59.4mil.

On the technical outlook for the KLCI, Maybank IB Research expects the KLCI to range between 1,570 and 1,600 on Tuesday. Downside supports are at 1,572 and 1,558.

CGS-CIMB Equities Research said “in the long term, we believe that this virus outbreak will lead to higher healthcare awareness especially in emerging countries, and in turn boost glove demand”.

It expects the sector’s earnings prospects to improve, supported by better supply-demand dynamics in the sector.

Top Glove and Hartalega, which are in the KLCI 30-stock list rose. Top Glove, the world’s largest glove maker, rose 17 sen to RM4.99 with 4.28 million shares done. Hartalgea added 10 sen to RM5.65 with 857,00 shares.

Kossan added 12 sen to RM4.35 and Supermax gained nine sen to RM1.40.

Stronger crude oil prices saw Petronas Dagangan gain 48 sen to RM23.68.

Dufu gained 13 sen to RM4.15 and Pentamaster 12 sen to RM5.18.

Source: TheStar