Friday, January 7, 2011

Mild bounce in glove makers

KUALA LUMPUR: Glove manufacturers were among the major gainers in late afternoon trade on Friday, Jan 7 as investors saw value in the counters which had been hammered down recently.

At 3.37pm, Hartalega was up 24 sen to RM5.66, Supermax 23 sen to RM4.47 and Aventa 16 sen to RM2.64.

The FBM KLCI rose 2.79 points to 1,571.16. Turnover was 2.01 billion shares valued at RM2.38 billion. Gainers beat losers 490 to 326 while 299 stocks were unchanged.

Glove makers fell sharply towards the later part of 2010 on concerns about oversupply, weaker demand and soaring latex prices.

However value has started to emerge in some of companies. Among them was Adventa, where analysts had recently rated it an OUTPERFORM given the potential re-rating catalysts of 1) higher OBM glove sales, 2) establishment of own distribution channels, and 3) better product mix from higher nitrile sales.

No comments:

Post a Comment