Glove stocks to add more weight

TheStar Wed, Nov 25, 2020 07:30am - 4 years View Original


Supermax Corp Bhd will join its two larger counterparts in the top 30 list, marking a historical moment for the index with three glove makers, but also one that will make it more sensitive to the sector.

PETALING JAYA: Bursa Malaysia’s benchmark index FBM KLCI, which is already heavily tilted towards the price movement of rubber glove counters, will see more rubber glove weightage being added to it starting Dec 21.

Supermax Corp Bhd will join its two larger counterparts in the top 30 list, marking a historical moment for the index with three glove makers, but also one that will make it more sensitive to the sector.

Together with Top Glove Corp Bhd and Hartalega Holdings Bhd, Kenanga Research said the three constituents were estimated to make up a 14.3% weight based on current prices, up from 11.7%.

This has also raised some debating points among analysts on the index’s increasing exposure to the risks faced by the sector.

This has also raised some debating points among analysts on the index’s increasing exposure to the risks faced by the sector. A good example of this was Top Glove’s plunge yesterday, falling 7.48% or 55 sen to RM6.80 yesterday after 28 of its factories in Klang had to be shut down in stages due to a surge in Covid-19 cases among its workers. The group alone was responsible for a third of the FBM KLCI’s decline yesterday.This has also raised some debating points among analysts on the index’s increasing exposure to the risks faced by the sector. A good example of this was Top Glove’s plunge yesterday, falling 7.48% or 55 sen to RM6.80 yesterday after 28 of its factories in Klang had to be shut down in stages due to a surge in Covid-19 cases among its workers. The group alone was responsible for a third of the FBM KLCI’s decline yesterday.

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Comments

LMC
1 Like · Reply
whoever publishing this article, u need to do proof reading as there are just too many repeated paragraphs in same article which is ridiculous!

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