KUALA LUMPUR (Jan 29): Amid a move by some retail investors to take on institutional short sellers, the Minority Shareholders Watch Group (MSWG) has advised the retail players to exercise diligence and be aware of the risks involved in such initiatives.
In a statement today, MSWG noted the retail investors are looking to buy shares of medical glove makers in an attempt to drive up their prices and counter the short sellers who tend to drive the prices down. In bursabets a new subreddit on social news aggregator site Reddit, Malaysian retail investors have been discussing buying up stocks of glove makers. Their issue is that the share prices of glove companies have dropped in recent months despite the increasing profits reported by these firms.
KUALA LUMPUR (Jan 29): Glove counters were in high demand today, pushing share prices sharply higher thanks to the calls made by some unknown investors over social media to take on the short sellers. However, the buying spree lost some steam in the mid morning, with all retreating from their peaks.
Seven of the glove stocks listed on Bursa Malaysia gapped up after the opening bell, starting the trading day at prices higher than Wednesday s closing.
Top Glove Corp Bhd, which has been the main target of short sellers, opened at RM7.05 versus the previous closing of RM6.21 on Wednesday. The share price of the world s largest rubber glove maker soared to a high of RM7.12. There were 96.97 million shares changing hands in the morning session, making it the fourth most actively traded stock on Bursa Malaysia.
Glove makers, whose share price tumbled at least 30% from their record highs, were seeing some bargain hunting today due to hope for sustainable high demand amid rising Covid-19 cases, according to a head of research and a fund manager The Edge contacted this morning.
KUALA LUMPUR (Jan 14): The rubber glove manufacturers saw declines in their share prices today after another bearish report from JP Morgan on the average selling price of rubber gloves going forward, as demand is expected to peak.
In a recent note, JP Morgan said gloves are “not needed” while administering vaccinations and that demand for gloves will continue to ease, contrasting with the consensus expectation that demand for disposable gloves will not shrink as sharply.
At 12.30pm, Top Glove Corp Bhd declined 27 sen or 4.1% to RM6.36, with some 27.9 million shares done.
Hartalega Holdings Bhd fell 64 sen or 4.9% to RM12.36, with some 3.9 million shares traded.
The share prices of the rubber glove makers have fallen by at least 40% from their respective peaks. Are these darlings of 2020 oversold? Probably yes if one looks at the target prices (TP) that are pegged by the investment analysts.