By Chester Tay
Shares of Malaysia glove stocks rose sharply on renewed buying interest after a new, fast-spreading coronavirus variant was found in South Africa.
Top Glove Corp. Bhd., the world's largest glove maker, was 10% higher by midday Friday.
Among other glove producers in the Southeast Asian country, Hartalega Holdings Bhd. climbed 7.6%, Kossan Rubber Industries Bhd. rose 7.5% and Supermax Corp. Bhd. advanced 8.7%.
Shares of the companies had fallen at least 50% since the beginning of the year amid a bleak outlook for glove prices, as most countries are making progress on their vaccination rates and the global supply of gloves rises.
Apart from the new strain, surging Covid-19 cases in Europe as winter approaches also spurred investors to bet on a rebound in glove demand and average selling prices, said Vincent Lau, head of equity sales at Rakuten Trade in Kuala Lumpur.
"There is definitely trading opportunities with this new variant discovered, but we are still uncertain whether this round of rebound [in glove stocks] would be sustainable," he said.
Write to Chester Tay at email@example.com
(END) Dow Jones Newswires
November 26, 2021 01:36 ET (06:36 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.