KUALA LUMPUR: Interest in rubber glove makers and healthcare-related stocks has soared, lifting some of them to multi-year highs. These counters dominated the list of top gainers on Bursa Malaysia yesterday amid expectations of stronger demand for their products to curb the coronavirus outbreak.

This was in contrast to the downtrend across the board. The FBM KLCI fell 21.17 points or 1.35% to 1,551.64 points, its lowest close since October 2019, mirroring the downtrend in regional stock markets — a knee-jerk reaction to growing concerns over the coronavirus’ impact on China’s economy and worldwide.

The Healthcare Index climbed 73.48 points or 5.4% to a record high of 1,436.24 points.

Among the board’s top gainers were rubber glove manufacturers such as Careplus Group Bhd, surging 68% to a two-year high of 39.5 sen, and Adventa Bhd, spiking 47% to a four-year high of 89 sen.

The big four rubber glove players’ share prices also took a big leap. Hartalega Holdings Bhd, Top Glove Corp Bhd and Kossan Rubber Industries Bhd closed at all-time highs yesterday.

Top Glove gained 8.3% to a record peak of RM6, followed by Kossan up 5.47% at RM5.01 and Hartalega rose 3.65% to RM6.25. Supermax Corp Bhd climbed 15.5% to RM1.86.

Investors also rushed into healthcare and medical equipment companies, including LKL International Bhd jumping 26% to a 2½-year high of 24 sen, BCM Alliance Bhd rising 18% to 16 sen and Bioalpha Holdings Bhd climbing 11% to 20 sen.

Even manufacturer of non-woven hygiene products Oceancash Pacific Bhd’s share price saw a spike, closing up 41% at an all-time high of 73.5 sen.

Notable healthcare counters such as KPJ Healthcare Bhd, IHH Healthcare Bhd and Pharmaniaga Bhd were up, closing 5.2%, 1.7% and 5.29% respectively.

“Overall, the appetite for gloves and healthcare-related companies would stay firm, while airlines, tourism and retailing stocks could witness further selling pressures,” said Hong Leong Investment Bank head of retail research Loui Low Ley Yee.

RHB Research, last Friday, upgraded its calls on Top Glove, Hartalega and Kossan to “buy” from “neutral”, in view of worse-than-expected conditions concerning the virus, exceeding the research house’s initial expectations.

RHB Research analyst Alan Lim said the cases and deaths as at last Friday doubled in less than two days.

As at press time, confirmed cases in China exceeded 4,500 and deaths rose to 106.

Confirmed cases have also been reported in other parts of the world, including in advance and developing economies. Malaysia reported four infections as at the time of writing.

Taking cues from the outbreak, the Malaysian Rubber Glove Manufacturers Association recently indicated its members are prepared to ramp up glove production. The association noted that during the previous H1N1 outbreak, medical glove consumption increased 17%.

“The travel season in the East Asian nation — in conjunction with the Lunar New Year festivities — is widely known for the highest human migration in the world, at three billion trips. Consequently, given the large number of Chinese citizens travelling during this period, we believe there is a real risk of further transmissions.

“Although the short-term impact to the sales volume of gloves should be limited, we believe the coronavirus will raise global health awareness, in turn boding well for the consumption of gloves in the long run,” said Lim. He has raised the target prices of Top Glove to RM6.35, Hartalega (RM7.55) and Kossan (RM5.70).