PETALING JAYA: The stage is now set for rubber glove stocks for a solid FY20 with a recovery in volume growth following three quarters of anaemic quarterly earnings growth, according to Kenanga Research.
Rubber glove sector
Maintain overweight: With the lacklustre demand in the past 12 months behind us, we see restocking activities ramping up as the current outbreak of the Wuhan virus enforces higher hygiene standards. All in, we raised our valuations from +one standard deviation (SD) to +1.5SD to better reflect rubber glove players’ prospects in anticipation of restocking activities, resilient earnings and constant evolution and progress to increase earnings. Based on historical valuation at peak earnings, rubber glove stocks, namely Kossan Rubber Industries Bhd, Hartalega Holdings Bhd and Top Glove Corp Bhd, were trading at between +1.5SD to +2.0SD historical forward mean.
TOKYO (Reuters) - The dollar held near a two-week high versus the yen on Friday on upbeat U.S. economic data ahead of a key jobs report, while the yuan eased and financial markets remained on tenterhooks as the death toll from a new coronavirus in China jumped yet again.
SINGAPORE (Reuters) - Asian share markets slipped on Friday and oil price gains stalled, as the growing death toll and economic damage from the coronavirus outbreak put a lid on the week’s sharp rally.
TOKYO (Reuters) - Oil prices climbed on Friday after Russia said it backs a recommendation for OPEC and other producers to deepen output cuts amid falling demand for crude as China battles the coronavirus epidemic that has hit global markets.
TOKYO (Reuters) - Asian stocks edged up on Thursday, cheered by record closes in Wall Street benchmarks after encouraging economic data, although investors kept a wary eye on the developments in the coronavirus outbreak.