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Malaysian Glove Makers' Shares Rise on Better Risk Appetite, Monkeypox Fears

By Chester Tay

 

KUALA LUMPUR--Shares of Top Glove Corp. Bhd. and other Malaysian glove makers were higher in early Monday trade amid improving risk sentiment coupled with worries over the spread of monkeypox cases around the globe.

Top Glove, the world's largest glove maker, rose as much as 5.5% in early trade before paring gains to trade 4.1% higher at 1.51 ringgit (US$0.34). Supermax Corp. Bhd. gained 4.9%, while Hartalega Holdings Bhd. and Kossan Rubber Industries Bhd. rose 4.1% each.

The fundamentals of the glove industry's marketplace remain unchanged, but recent weakness in glove stocks as Covid-19 enters an endemic phase globally has prompted some bargain buying interest, said Thong Pak Leng, equities research vice president at Rakuten Trade.

Malacca Securities senior analyst Kenneth Leong said sentiment toward glove stocks may have improved after recent news about monkeypox cases globally.

Several cases of monkeypox, which is rarely found outside certain parts of West and Central Africa, have been reported in several countries across Europe, including the U.K., Spain and Portugal. Cases have also been detected in Canada, Australia and the U.S.

Top Glove's stock has been on a downtrend lately, closing higher only one day since late April. Shares are down 9.5% this month and 41% since the beginning of the year.

 

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

 

(END) Dow Jones Newswires

May 22, 2022 22:19 ET (02:19 GMT)

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