Seeing the target price of the glove companies gets higher as those stocks climb has been discomforting. Yes, there is going to be a big jump in their earnings but for how long? As the rate of infections starts to fall so will demand
THE stock market is within a whisker of charting into positive territory for the year, recouping much of the sharp losses as the massive fiscal stimulus and hopes of an earnest recovery build momentum surrounding the earnings of companies and the rate of growth of the economy.
The FBM KLCI rode on the concept play of glove makers and rotational play among lower liners during the depths of the crisis, but it’s the bounce of the heavyweight stocks that was the fifth gear the index benefited from.
The absence of short selling has meant the one-way ride has been unchecked.
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