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Malaysian Glove Stocks Rise on China Lockdowns, New Variant

   By Chester Tay 
 

KUALA LUMPUR--Shares of Malaysian glove companies rose in early trade on Monday, boosted by concerns over supply following new lockdowns in China as well as uncertainty about the spread of a new Covid-19 variant, analysts said.

Top Glove Corp. Bhd., the world's biggest maker of protective gloves, and Supermax Corp. Bhd. were both rose 6.6% higher. Hartalega Holdings Bhd. gained 6.5%, while Kossan Rubber Industries Bhd. advanced 3.3%.

Glove prices had been pressured lower lately as China raised its production capacity during the pandemic but new Covid-19 lockdowns in Shenzhen and Shanghai could lead to delayed shipments of exports if port operations are disrupted, said Malacca Securities senior analyst Kenneth Leong.

Some investors might also be responding to news about a Covid variant dubbed Deltacron, a Kuala Lumpur-based glove sector analyst said. The World Health Organization said last week that the hybrid strain had been detected in several European countries.

This "could be just a sentiment play," the analyst added, saying that China accounts for perhaps just 10% of the global glove exports market. "There is plenty of room for Malaysian players to ramp up production, [so] global supply should be sufficient," the analyst said.

 

Write to Chester Tay at chester.tay@wsj.com

 

(END) Dow Jones Newswires

March 14, 2022 00:28 ET (04:28 GMT)

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