Glove sector downgraded to underweight as ASPs weaken

KUALA LUMPUR: UOB Kay Hian Malaysia Research has downgraded the glove sector to underweight from market weight as it fears the moderation of earnings over 2022-23 would drag on sentiment.

In its report on Tuesday, it added that due to the lofty average selling prices (ASPs), the glove makers could revert sharper than expected. Inventory levels in the US are said to have almost restocked to pre-Covid-19 levels, it said.