Glove stocks rise as GameStop mania hits KL bourse

 

Shares of glove makers rose on the stock exchange after small investors formed a group to push up prices.

KUALA LUMPUR: Malaysian retail investors, taking a tip from the GameStop phenomenon in the US, have joined forces and pushed up prices of under-pressure rubber glove makers on the stock exchange.

The share price of Top Glove, the world’s largest glove maker, rose over 8%, while rival companies also notched up strong gains: Hartalega put on over 5% and Supermax was up 3.6%.

The surge came a day after a Reddit group called BursaBets was set up, inspired by the US GameStop movement, with members urging people to buy and hold shares, in this case, targeting glove stocks. BursaBets has over 6,800 members.

Glove makers had enjoyed a huge rise in their share prices last year because of strong demand arising from the Covid-19 pandemic.

But the companies were hammered in recent weeks as vaccines became available and they were targeted by short sellers, after the government lifted a ban on the practice.

Top Glove’s stock soared by almost 300% last year, but later fell by about 40%.

“I believe the current price of gloves are very undervalued, and my personal stance is that I want to hold on to it until it gets to its fair value,” AFP quoted BursaBets founder, a Reddit user with the account name _Revenant_.

“I just want the market to realise that the valuations are too low and that our glove companies deserve better.” - FMT