By Chester Tay
Shares of Malaysian glove makers are rallying ahead of expected strong quarterly earnings, buoyed by a surge in demand for gloves in the wake of the Covid-19 pandemic.
Shares of Hartalega Holdings Bhd.'s rose 18% to a record high of MYR8.99, bringing its year-to-date gains to 62%.
Shares of other glove companies were higher as well, with Comfort Gloves Bhd. up 15%, Kossan Rubber Industries Bhd. 14% higher, and Top Glove Corp. and Supermax Corp. each up 13%. Riverstone also gained 10%.
Singapore-listed glove maker Riverstone Holdings Ltd., had reported a 54% jump in its first-quarter results on Monday.
"The second reason for the rally is the potential second wave of coronavirus outbreak in Asia. But we think investors should be cautious as the share prices now seem overbought," Danny Wong, Areca Capital Sdn. Bhd. chief executive officer told The Wall Street Journal.
Write to Chester Tay at email@example.com