26 November 2024, Tuesday | 11:28am

Glove makers rise on CMCO extension, new Covid-19 cases in China

2020-05-12

KUALA LUMPUR: Glove makers emerged as top gainers on Bursa Malaysia today following the government's decision to extend the conditional movement control order (CMCO) for another four weeks until June 9.

This came amid growing investor worries about a second wave of Covid-19 infections after the Chinese city of Wuhan where the pandemic originated reported its first new cases since its lockdown was lifted, according to Reuters.

Topping the top gainer list as at noon was Top Glove Corp Bhd, whose shares had jumped 69 sen or 9.44% to RM8, followed by Kossan Rubber Industries Bhd which had gained 40 sen or 6.84% to RM6.25.

Comfort Gloves Bhd and Supermax Corp Bhd were the third and fourth biggest gainers, rising 37 sen or 21.14% to RM2.12 and 27 sen or 9.06% to RM3.25 respectively.

The four counters saw a combined 72.2 million shares traded.

Shares in glove makers have been the darling of investors since the onset of the Covid-19 pandemic, with Top Glove, Kossan, Comfort and Supermax having gained 71.83%, 50.24%, 167.09% and 135.51% respectively year to date.

According to Reuters, the central Chinese city of Wuhan reported five new confirmed cases yesterday, casting doubts over efforts to lower Covid-19-related restrictions across the country as businesses restarted and individuals went back to work.

This pushed Asian equities and oil prices lower with Hong Kong's Hang Seng Index futures down 0.68%, while Japan's Nikkei 225 futures were off 0.1%.

A second wave of infections would likely snuff out the recent rally in equity markets, and lead investors to position for a severe and prolonged global recession.

Source: The Edge Markets

 

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