Malaysian Glove Makers Rally As Market Worry Over Omicron Threat
Glove counters uptrend driven by fear of another potential Covid-19 outbreak.
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Ancient Chinese general and military strategist Sun-Tzu said that in the midst of chaos, there is also opportunity.
With uncertainties over the threat posed by the new Omicron Covid-19 variant which is said to be potentially more infectious, shares of glove makers on Bursa Malaysia’s Main Board shot up on Monday (29 November).
The glove stocks dominated the price and popularity charts to keep the Health Care Index as the only index that is up in Bursa Malaysia.
Hartalega (HARTA, 5168), Top Gloves (TOPGLOV, 7113) and Supermax (SUPERMX, 7106) are among the top 5 price gainers in the market.
Hartalega and Top Glove were up 75 sen and 55 sen each at RM6.40 and RM3.19 respectively, while SUPERMAX was up 30 sen to RM2.15.
Careplus (CAREPLS, 0163) rose 10 sen to RM1.32 sen, but with a massive volume of 221.37 million shares traded, the second most active in the market.
The Age Of Gloves
Glovemaking companies have seen their shares actively traded on the stock markets since early last year….
The surge was driven by the expectation of increased demand for healthcare equipment.
It was the best of times for owners of glove companies.
READ MORE: Malaysia Has 2 New Billionaires Thanks To Covid-19
The glover makers were doing so well that politicians even proposed to impose a special windfall tax on them.
The government had since announced that glove makers will be exempted from windfall tax, although there will be a prosperity tax for all companies earning more than RM100 million in profits.Â
Happy Days Don’t Last Forever
Their share prices peaked around this time last year, but have since pulled back in 2021.
Their decline was drive by the advent of vaccination and the gradual reopening of economic activities, which are now in doubt because of Omicron.
The Omicron coronavirus variant reportedly spread around the world with new cases detected in the Netherlands, Denmark and Australia.
READ MORE: New Omicron Strain Detected By South African Scientists But Africa Gets Banned Instead
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