Falling demand, lower prices drag glove makers


Hartalega Holdings Bhd’s shares fell 35 sen or 12.5% to RM2.45, erasing some RM1.2bil in market capitalisation, with the stock now trading at five-year lows as investors digested its 96% year-on-year (y-o-y) drop in earnings for its second quarter. Top Glove Corp Bhd fell five sen or 5.6% to 93 sen which erased RM400mil of its market value as its shares hit values last seen five years ago.

PETALING JAYA: Glove makers came under fresh selling pressure yesterday on bearish demand-supply fundamentals as analysts warn a glut in the world market is set to pressure average selling prices (ASPs) further as Chinese glove makers push for market share.

Local glove makers are now caught in a perfect storm of falling demand, lower pricing power and a jump in supply and production capacities that are hitting margins hard.

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