Analysts tread cautiously on glove stocks

PETALING JAYA: While glove stocks have been able to hold on to much of the price gains made in the past four trading weeks, analysts remain unconvinced, noting sector fundamentals show no signs of recovery.

CGS-CIMB Research, in a report yesterday, stated even if the local rubber glove makers may enjoy translation gains on the weaker ringgit against the US dollar, the oversupply and weak demand from buyers remain core factors that will continue to dampen outlook of the rubber glove sector.