China Covid policy drives up glove makers’ share values

London – Malaysian glove makers have seen share values improve from the0 multi-year lows in the summer, due in part to China’s zero-Covid policy.

Shares of the world’s number one glove manufacturer Top Glove traded RMB0.81 on the Kuala Lumpur Stock Exchange in mid-day trading on 31 Oct.

This was up 3.7% from the low of RMB0.59 per share reported 28 Sept, but more than 90% down on the RMB9.38 peak reached in August 2020 amid the Covid pandemic.

The uptick in share values is seemingly linked to reports of China intensifying its Covid lockdown policies in 28 cities, which affected nearly 210 million citizens.

According to news reports, China is unlikely to move away from its stringent Covid policies until the second half of 2023, despite the negative impact of the policy on its economic growth.

Share-price gains were also witnessed by other Top Glove peers on the Bursa Malaysia over the past week.

Hartalega, another major gloves manufacturer, saw its shares trading at RMB2.13, up from RMB1.49 lows on 19 Sept.

Tracking a similar trend, Kossan Rubber Industries saw share values rising to RMB1.23 by mid-day 31 Oct, recovering from lows of RMB0.99 in mid-August.

Supermax shares closed RMB0.96, up from RMB0.67 on 28 Sept.