Glove sector’s earnings should improve soon, says Kenanga

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Kenanga Research maintains “neutral” call on the sector on the back of cost pressure relief and savings from plant decommissioning.

The global demand for gloves continues to rise by 15% per annum underpinned by rising hygiene awareness, says Kenanga Research

In a sector update today, the research house has maintained a “neutral” call on the sector, which it said will benefit from a relief in cost pressures and savings from the decommissioning of older plants for the second half of 2023. It also projects that industry capacity cutbacks ought to bring back more rational competition and hopefully stop the bleeding of the industry players.

 

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