Skip to main content

Posts

Showing posts with the label glove sector

Featured Post

Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.

Strong Ringgit Is Becoming a Headwind for Malaysia’s Glove Sector

Malaysia’s strengthening ringgit — up  more than 10% against the US dollar in 2025  — is increasingly squeezing earnings for export-heavy glove makers, just as the industry struggles with excess capacity and weak pricing power. While a firm ringgit reduces macro risk and improves foreign investor confidence, it  directly compresses margins  for companies whose revenues are overwhelmingly USD-denominated. What’s Happening on the Ground Over  90% of glove sales are priced in US dollars A stronger ringgit means  lower translated revenue in MYR Weak demand recovery forces producers to  sacrifice pricing to defend volume At  Top Glove , Q1 sales volume grew 17% YoY — but  average selling prices fell 11% , largely due to FX effects. Peers such as  Hartalega  and  Supermax  have also reported earnings pressure or widening losses. Why Glove Makers Are More Exposed Than Other Exporters Unlike palm oil or large tech exporters, glove...

Gloves Off: Why Malaysia’s Rubber Sector Faces Another Tough Round

  Sector Call: UNDERWEIGHT RHB Research maintains a cautious  UNDERWEIGHT  stance on the rubber products sector, citing  prolonged oversupply ,  rising cost pressures , and  shrinking pricing power . Stock Ratings and Target Prices Company Rating Target Price HARTA (5168.MY) SELL RM1.33 KOSSAN (7153.MY) SELL RM1.23 SUPERMX (7106.MY) SELL RM0.54 TOPGLOV (7113.MY) SELL RM0.65 Riverstone (AP4.SG) BUY SGD0.95 Key Sector Challenges 1.  Export Declines Reflect Weak Demand April: -22% MoM glove export drop May: -6% MoM Driven by  slow restocking , lingering inventories, and fading momentum from late 2024 front-loading. 2.  Rising Regional Competition New glove plants in  Indonesia and Vietnam  set to threaten Malaysian exports by  November 2025 . Aggressive pricing by  Chinese manufacturers  further pressurises Malaysian players. 3.  Margin Pressure from Cost Increases Ringgit appreciation  YTD erodes export profit...