GLOVE makers continued to shine on Bursa Malaysia, led by Top Glove Corp Bhd which hit RM8.28 at 9.08am, as the Covid-19 pandemic boosted demand for rubber gloves in the global medical industry.
The counter retreated to RM7.92 at 11am, after jumping by as high as 97 sen in early trade.
RHB Retail Research said Top Glove may trend higher as it continued to hold above the RM7.08 support level.
“As the stock recorded a new 52-week high, the positive sentiment has been enhanced. An upbeat bias may emerge above the RM7.22 level, with an exit set below the RM7.08 mark.
“Towards the upside, the immediate resistance is at the RM7.70 level, followed by the RM8.00 threshold,” it said in a note today.
Meanwhile, Hartalega Holdings Bhd’s shares were 17 sen higher at RM7.53, while Kossan Rubber Industries Bhd rose 37 sen to RM5.85.
Kenanga Research said it believes that the market is under-appreciating the potential impact from higher-than-expected average selling prices (ASPs) on Kossan.
“Personal protective equipment (PPE), of which gloves are one of the components, is presently much sought after due to its limited supply.
“As such, we expect buyers to jockey for position in order to secure allocations which will push up ASPs,” it said in a note today.
Hence, Kenanga said it has raised its projection of Kossan’s financial years 2020 and 2021 net profit by 6% and 11%, respectively, to account for higher ASPs, adding that it has also raised the target price to RM7.20 from RM6.30 previously. — May 12, 2020, Bernama
