KUALA LUMPUR: Glove counters were among the most active on Bursa Malaysia in early trade on Thursday, buoyed by a positive outlook for Malaysian players amid tariff shifts in the global market.
Bursa Malaysia's Health Care Index rose 50.57 points, or 2.75%, to 1,888.76 at 9.36 am.
Top Glove rose 5.5 sen to 86 sen, with 28.38 million shares traded, though it has fallen by about 33% year-to-date.
Supermax added 10 sen to 81.5 sen with 24.98 million shares exchanged, while Hartalega
gained 19 sen to RM2.05, with 10.85 million shares traded.
Kossan gained 16 sen to RM1.80, with 6.56 million shares traded, while Careplus climbed one sen to 17.5 sen with 6.26 million shares done.
Hong Leong Investment Bank (HLIB) Research said that, on a relative basis, the 24% reciprocal tariff on the sector is likely to enhance the competitiveness of Malaysian glove players.
“This is especially so when compared to China, which could face a much higher tariff of 50% + 20% + 34% (set to rise to 100% + 20% + 34% by Jan-26), while Thailand will also be elevated at 36%,” it said.
“In the near term, Malaysia is expected to gain US market share in higher-margin nitrile gloves (at the expense of Thailand), while losing some ground in lower-margin latex gloves for non-US markets,” the research house added.
Meanwhile, steep US tariffs on Vietnam (+46%) and Indonesia (+32%) could deter Chinese glove makers from expanding in these countries, thereby reducing the oversupply threat from China’s “+1” strategy by mid-2026.
“Since glove makers’ share prices have fallen 40-50% year-to-date, the sector’s risk-reward profile is now skewed to the upside.
“We upgrade Top Glove (BUY; TP: RM0.91) and Hartalega (BUY; TP: RM2.66), while keeping our BUY call on Kossan (TP: RM2.81),” HLIB Research said.
