Top Glove jumps 52% as omicron concerns boost

News about the appearance of a new strain of coronavirus «omicron» sharply increased the demand for shares of manufacturers of disposable gloves and masks. In particular, the papers of the largest glove manufacturer of the Malaysian company Top Glove have risen by 52% in two days.

On Monday, the share price of Top Glove rose by 30% to 3.43 Malaysian ringgit. By the end of trading, growth slowed to 21%, and the price dropped to 3.19 Malaysian ringgit.

Shares of Top Glove's competitor, Hartalega Holdings Bhd., are also rising for the second day in a row. During this time, they have gained 24%. The securities of the Malaysian manufacturer of personal protective equipment Kossan Rubber Industries Bhd. for two sessions rose by 18%, and Supermax Corp. – by 34%.

The rise in the shares of rubber glove manufacturers is reminiscent of last year's rally in the securities of companies producing medical clothing and personal protective equipment. In 2020, the entire sector showed rapid growth against the background of the pandemic, and Top Glove securities, in particular, added 290%. However, in 2021, the capitalization of many industry players fell due to concerns about a decrease in demand for products.