KUALA LUMPUR (July 16): After yesterday's strong selldown, the big glove counters, except Kossan Rubber Industries Bhd, are back on the top gainer list this morning.

Today, Top Glove's share price rose RM1.68 or 7.71% to RM23.48 at 10:02am, Supermax climbed 68 sen or 4.52% to RM15.74 while Hartalega was 56 sen or 3.59% higher at RM16.16.

Judging by the share price trend of late, there seems to be profit-taking activities capping the upward momentum.

The rising number of new cases in several parts of the world which leads to higher expectation of stronger-than-ever demand for rubber gloves in the next two quarters, if not longer, and sharp rise in selling prices of gloves are the main fuel for the share price rally.

On the flip side, the hefty profit after the rally is also tempting investors to lock in some gains as the valuations of the glove companies are currently at a high level never seen before.

Yesterday, Covid-19 vaccine hopes and profit-taking appeared not to bode well for shares of rubber glove manufacturers.

Bursa's top four decliners were rubber glove manufacturers, led by Hartalega followed by Top Glove, Supermax and Kossan Rubber Industries Bhd.

Hartalega's share price closed RM1.40 or 8.24% lower at RM15.60 while Top Glove finished down RM1.36 or 5.87% at RM21.80.

In a note yesterday, Hong Leong Investment Bank Bhd analyst Farah Diyana Kamaludin said the research firm maintained its "overweight" call on the rubber glove sector with "buy" calls for Top Glove, Hartalega and Kossan shares.

"Maintain 'overweight' on rubber gloves driven by a pandemic-fuelled demand. Market leader Top Glove (TP: RM31.31) is our top pick for the sector, being the largest glove manufacturer globally with vast clientele, readily supporting the increasing demand," she said.