KUALA LUMPUR, May 16 (Bernama) -- Rubber glove stocks lost their bounce today as investors opted to take profit following yesterday's rally.
The top four companies in the sector - Top Glove Corporation Bhd, Kossan Rubber Industries Bhd, Hartalega Bhd and Supermax Corporation Bhd all tumbled about 10 per cent.
At 11 am, Top Glove lost 13 sen to RM1.13, Hartalega fell 37 sen to RM3.45, Kossan gave up 27 sen to RM2.47 and Supermax slid 10.5 sen to 97.5 sen.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng described yesterday’s euphoria as only a knee-jerk reaction and that such hype was not sustainable.
Glove stocks took the spotlight on Wednesday, buoyed by the US tariff imposition on Chinese goods, which will only take effect in two years.
US President Joe Biden's decision would result in the tariff on Chinese rubber medical and surgical gloves rising to 25 per cent in 2026 from the current 7.5 per cent in the United States.
“This higher tariff is expected to close the price gap between Malaysia and Chinese gloves, making Malaysian-made gloves more price attractive in the US, which is a key export market,” UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said yesterday.
-- BERNAMA
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