Thursday, December 16, 2010

Gloves makers fall in early trade

KUALA LUMPUR: Glove makers fell in early trade on Thursday, Dec 16 as investors worried about the outlook for the industry following the disappointing earnings from Top Glove Corp Bhd, the world's largest glove manufacturer.

At 9.27am, the FBM KLCI was down 4.18 points to 1,504.92. Turnover was 100.21 million shares valued at RM85.29 million. There were 166 losers to 111 gainers and 170 stocks unchanged.

Top Glove, Supermax and Kossan fell seven sen each to RM5.38, RM4.34 and RM3.29 respectively.

OSK Research said Top Glove's 1QFY11 results were below expectations owing to normalising demand for examination gloves.

'As such, we are downgrading our FY11-12 earnings by 11%-22%. Going forward, we expect latex price to either pull back in 1QCY11, or continue to go up until April/May 2011 when the wintering season for rubber trees ends,' it said on Thursday.

The research house said it was maintaining a Neutral with a revised target price of RM5.74.

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