Investors give glove producers the benefit of the doubt, chase stocks higher

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PETALING JAYA: Malaysian glove producers, which are syariah-compliant counters, seem to be receiving the benefit of the doubt from investors, ending t...

Malaysian glove producers, which are syariah-compliant counters, seem to be receiving the benefit of the doubt from investors, ending the week mostly up, despite the decision by the US Department of Labor to place Malaysian-manufactured gloves on its list of goods produced by forced labour.

The latet survey also found that investors are increasingly holding companies accountable, with ESG factors playing a central role in their decisions with 91% of investors stating that non-financial performance has played a pivotal role in their investment decision-making over the past 12 months, either frequently or occasionally.

In Malaysia, he pointed out, this habit has yet to take root, especially among the retail investors. “In the future, retailer investors will be more mature and understand the importance of ESG which would lead to downward pressure on companies faced with similar news.” It should be noted that of the “big four” – Hartalega, Kossan, Top Glove and Supermax – only two are included in the FTSE4Good Bursa Malaysia Index, with Top Glove being the only one coming in the top 25% by ESG ratings among listed companies in FBM EMAS that have been assessed by FTSE Russell.

“The challenge for the USA is many America-based companies can’t compete with Asian companies and they apply other tactics to control the growth and valuation of these companies,” said Shan. He projected that Asian glove manufacturers will continue its rise towards the end of the second half of the year.

 

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