Top Glove leads gains among Malaysian glove makers on talk that the spread of swine flu would bolster demand for health-protection products
TOP Glove Corp Bhd (7113) rose to a 15-month high in trading on Bursa Malaysia, leading gains among Malaysian glove manufacturers amid speculation that the spread of swine flu would bolster demand for health-protection products.
Shares of the world's largest rubber glovemaker climbed 4.6 per cent to RM5.75 as of 11.01am, set for the highest close since January 17 last year.
Kossan Rubber Industries Bhd gained 5.4 per cent to RM3.52 and Hartalega Holdings Bhd added 4 per cent to RM3.14. The benchmark Kuala Lumpur Composite Index lost 0.8 per cent.
It's "the glove play", said Jason Yap, an analyst at OSK Research Sdn Bhd in Kuala Lumpur. "It's the sentiment."
Still, the virus is not widespread and the rally is "not justified" based on the company's fundamentals, he said.
Last Saturday, the World Health Organisation called the outbreak a "public health emergency of international concern".
The US, New Zealand and France are among countries that have reported confirmed or suspected cases of swine flu, which is normally transmitted among pigs.
Top Glove chairman Tan Sri Lim Wee Chai did not immediately respond to a message on his mobile phone.
Adventa Bhd, which supplies sterile surgical and medical examination gloves, surged 14 per cent to RM1, the highest level since July 17. Supermax Corp Bhd climbed 6 per cent to RM1.58. - Bloomberg
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