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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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CIMB Optimistic Glove Industry Can Pass On Cost Increases Amid Tariff Changes

CIMB Securities has expressed a positive outlook for the glove industry, despite cost pressures from Budget 2025 measures. These cost pressures arise from higher labour costs, including increased foreign worker levies and a minimum wage hike. However, analysts remain confident that glove manufacturers will pass these increased costs to consumers by raising average selling prices (ASPs).

With labour costs making up around 9% to 11% of total production costs, production costs are estimated to rise by 1.7% to 2.4%. Glove makers are responding by raising ASPs between 5% and 10%, and prices are now between US$21 to US$23 per 1,000 pieces for orders slated for December and January delivery.

A significant tailwind for Malaysian glove manufacturers comes from the upcoming hike in US tariffs on gloves from China. Starting in January 2025, US tariffs on medical and surgical gloves from China will rise from 7.5% to 50%, with further increases to 100% by 2026. This development is expected to shift demand to Malaysian producers, especially from US-based clients, who make up 40% of global glove imports.

Despite intensified competition in non-US markets, CIMB maintains an 'overweight' rating on the rubber glove sector. Hartalega Holdings Bhd and Top Glove Corp Bhd are highlighted as key players, with 'buy' ratings and target prices set at RM3.12 and RM1.25, respectively.

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