Analysts have also turned bullish on the sector as at least three research houses upgraded their sector rating to “overweight”.
Analysts have also turned bullish on the sector as at least three research houses upgraded their sector rating to “overweight”, namely, CIMB Securities Research, Kenanga Research and Hong Leong Investment Bank Research. On Sept 13, the Office of the United States Trade Representative announced that tariffs on Chinese medical and surgical gloves will be raised to 50% in January 2025 from 7.5% currently.
It also said the US tariff increase could present opportunities for Malaysia glove makers to gradually raise prices and recommission capacity. In a separate note, HLIB Research upgraded its view on the glove sector to “overweight” from “neutral”.At this juncture, the research house kept its earnings forecasts in the financial year 2024 to 2027 unchanged for Hartalega and Kossan.