Quick take: Glove stocks slide as profit-taking kicks in

KUALA LUMPUR: Glove makers and healthcare counters rally hit a speed bump in early trade on Tuesday with some profit-taking kicking in.

Hartalega Holdings Bhd, Rubberex Corp (M) Bhd, Top Glove Corp, COMFORT GLOVES BHD and Kossan Resources Industries Bhd, which saw a share price rally recently, lead the decliners’ list on Bursa Malaysia.

Hartalega fell 52 sen to RM12.66, Rubberex declined 54 sen to RM4 while Top Glove eased 30 sen to RM15.24. Kossan shed 30 sen to RM8.84 while Comfort fell 28 sen to RM3.92.

Medical equipment provider LKL International Bhd fell 15.5 sen, or 18.24% to 69.5 sen.

On the other hand, HLT Global rose 1.13%, or one sen to 89.5 sen with 54 million shares traded. Its share price hit limit up yesterday. The company also holds a 55% stake in HL Rubber Industries Sdn Bhd which manufactures rubber gloves.

CGS-CIMB Research, in its report said, the surge in volume and the push to the limit yesterday, it thinks that potentially, the current up move may turn out to be a buying climax.

The research house said both HLT’s moving average convergence divergence (MACD) and relative strength index (RSI) indicators have been trending up but both have reached overbought levels.

“While there is still room for another push higher today, we would prefer to take profits if you have not already done so earlier.

“For traders who want to try for higher prices (the psychological RM1 is the next resistance), but remember to keep a stop at 75.5 sen or below, a tick below the halfway mark of yesterday’s giant white candle.

“If the 75.5 sen stop is not hit, continue to trail the stop at one tick below the low of yesterday, whichever is higher,” CGS-CIMB said.

Source: TheStar