Glove makers buck trend

Shares of glove makers gained despite a bearish market yesterday, as investors bet on rising demand with the re-emergence of a deadly flu in China and in some parts of Southeast Asia.

"This could be a catalyst for them if the flu spreads among the mass population," said Mercury Securities head of research Edmund Tham.

Wire news agency reported yesterday that the Southern Chinese province of Hunan reported six deaths by H1N1 virus in February.

In Hong Kong, there were four confirmed Human Swine Influenza cases since March 9, reports said, citing the Hong Kong Hospital Authority.

Elsewhere, it was also reported that Myanmar had suspended poultry exports to Saudi Arabia, following the re- emergence of the bird flu virus.

Exports of chicken and eggs from Myanmar to Saudi Arabia have been temporarily prohibited by the World Organisation for Animal Health.

The H1N1 flu was a major health and economic problem in 2009, though it did help spark a mini rally in shares of glove makers.

"If the virus spreads, there will be an upside on the stock market trading front for the glove makers, though profit margins might still be culled if latex prices remain high," said Tham.

Top Glove Corp Bhd, the world's largest rubber glove maker, rose 11 sen to RM5 a share with 2.48 million shares exchanging hands while Supermax Corp Bhd ended the day higher by 8 sen to RM4.24 a share with 1.47 million shares traded

Across the board, other glove makers such as Adventa Bhd, Latexx Partners Bhd and Kossan Rubber Industries Bhd advanced to close the trading day on a positive note. - By Francis Fernandez, btimes.com.my