Top Glove leads KLCI gainers amid virus outbreak concerns

KUALA LUMPUR (Jan 21): Top Glove Corp Bhd's share price rose as much as 34 sen or 7.05% to RM5.16 so far today to become the leading percentage gainer among the FBM KLCI's 30 stocks as a new coronavirus global outbreak led to anticipation of higher rubber glove demand.

At Bursa's 12:30pm afternoon break, Top Glove shares settled up 31 sen or 6.43% at RM5.13 for a market capitalisation of RM13.13 billion. Top Glove was the leading percentage gainer among KLCI stocks followed by Hartalega Holdings Bhd's 4.5% gain.

Year-to-date, Top Glove had gained 9.15%, outperforming the KLCI's 0.03% rise. Top Glove was the second-largest percentage gainer after Press Metal Aluminium Holdings Bhd, the share price of which, had climbed 11.83% so far this year.

Reuters, quoting China authorities as saying on Monday that outbreak of the new coronavirus has spread to more Chinese cities, including the capital Beijing and Shanghai and a fourth case has been reported beyond China’s borders.

"China’s National Health Commission confirmed that the virus, which causes a type of pneumonia, can pass from person-to-person, the official Xinhua News Agency said," Reuters reported.

In Malaysia today, CGS-CIMB Securities Sdn Bhd analyst Walter Aw wrote in a note that CGS-CIMB's channel checks revealed that glove makers have yet to witness a surge in demand for their products as the virus is new and mainly in China at this juncture.

"We maintain our overweight call on the rubber glove sector. We expect the sector’s earnings prospects to improve, supported by better supply-demand dynamics in the sector," Aw said.