Rubber glove manufacturers to benefit from Covid-19 and weaker ringgit

KUALA LUMPUR: Despite overall sector performance falling below market expectations, the Malaysian rubber glove sector could experience a stronger 2020 performance on the back of stronger demand arising from Covid-19 and a weaker ringgit against the US dollar.

Affin Hwang Capital research remains overweight on the sector and increased its earnings forecasts for 2020 by 2% to 3% as it expects stronger earnings growth in the first half of the year due to the Covid-19 outbreak.