KUALA LUMPUR (Nov 10): The slew of companies that recently announced plans to enter the rubber glove business were broadly hit by a selldown this morning amid news that an experimental Covid-19 vaccine developed by Pfizer and its German partner BioNTech was more than 90% effective.

As of 10.09am, shares in AT Systematization Bhd slipped 11.6% or 2.5 sen to 19 sen. It is the most traded counter this morning, with 1.05 billion shares traded within two hours after the opening bell. 

Luster Industries Bhd was the seventh most actively traded stock today with some 76.86 million shares being traded. It was down by 11.63% or 2.5 sen at 19 sen, valuing it at RM458.05 million.

Meanwhile, HLT Global Bhd shares were trading 5.03% or eight sen lower at RM1.51, giving it a market capitalisation of RM925.99 million. HLT saw 8.77 million shares transacted.

Mah Sing Group Bhd, which share price has more than doubled after it announced the foray into the rubber glove space, dropped  5% or five sen at 95 sen apiece, translating into a market value of RM2.31 billion.

As for Inix Technologies Bhd, it was down 6.52% or 1.5 sen at 21.5 sen, valuing it at RM89.76 million. It saw 2.45 million shares transacted,

Titijaya Land Bhd fell by 1.21% or half a sen at 41 sen piece, now valuing the property developer cum rubber glove and Covid-19 vaccine player at RM556.94 million.

Hong Seng Consolidated Bhd (formerly known as MSCM Holdings Bhd) was down by 2.83% or three sen at RM1.03.

However, bucking the trend is Kanger International Bhd. Its share price was up 2.63% or 0.5 sen at 19.5. Thes stock is the third most actively traded counter on Bursa Malaysia 240.34 million shares.

These new entrants, except for HLT Global, have yet to commence their glove production. The availability of the vaccine raises the question whether the growth in the demand for disposable rubber gloves will remain as strong moving forward to absorb the additional supply from the new entrants. 

The selldown seen among most of the new kids on the block in the rubber glove sector comes in as Pfizer made an overnight announcement that its Covid-19 vaccine candidate had a more than 90% efficacy rate with no serious concerns based on the initial trial results.

Pfizer is hoping to ship out up to 50 million doses this year for 25 million people and produce 1.3 billion doses in 2021.

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