KUALA LUMPUR (Jan 28): Rubber glove stocks led gainers at Bursa Malaysia with Top Glove Corp Bhd climbing to its all-time high, amid escalated fears of the deadly coronavirus as the death toll exceeds 100 in China, while the number of confirmed cases continue to rise in several countries. 

At 11.22am, gainers were led by Top Glove which gained 52 sen or 9.39% to RM6.06, followed by Hartalega Holdings Bhd (up 5.31% at RM6.35) and Kossan Rubber Industries Bhd (up 5.68% at RM5.02).

Other rubber glove counters such as Adventa Bhd (up 28%), Careplus Group Bhd (up 57%) and Comfort Gloves Bhd (up 11%) were also seen among top gainers.

This followed upgrades by research houses to their calls on rubber glove companies, including Hartalega Holdings Bhd, Top Glove Corp Bhd and Kossan Rubber Industries Bhd last week.

RHB Research Institute analyst Alan Lim had last week upgraded Top Glove to ‘Buy’ from ‘Neutral’ with a higher target price of RM6.35, and said the coronavirus cases are worse than initially expected, given the number of cases and deaths have doubled in less than two days.

“Due to the Lunar New Year, risks of further transmission are now likely, due to the three billion trips expected in China. 

“All this bodes well for long-term gloves demand,” Lim wrote in a recent note.

While the analyst notes the limited short-term impact this event will have on sales volume, he expects glove consumption to increase in the long run, amid rising global health awareness.

He also raised his target prices on Hartalega, Kossan and Supermax to RM7.55, RM5.70 and RM1.86.

At the time of writing, the number of deaths from the virus has exceeded 100, with the virus having spread to more than 10 countries including France, Japan and the US.

China said the death toll from the coronavirus rose to 106, with 4,515 confirmed cases.