02/04/2015

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MALAYSIA: Better year ahead for glove makers: CIMB Research

It said on 26 Jan. 2015 that while it still maintains its view the sector will see fiercer competition as more new capacity comes on-stream, the pricing pressure will now be partially alleviated by the stronger US dollar and falling crude oil prices which could lead to lower raw material prices. "In addition, the uncertainties from possibly higher electricity tariff and gas prices are temporarily removed as the government has postponed the hikes for now. The companies are also expected to return to earnings growth in FY15 from earnings contractions in FY14, driven by capacity expansion. "These catalysts will definitely spur buying interest, especially when the market is volatile with investors switching to defensive sectors like the rubber glove sector,” said the research house. Source: Daily "The Star”, Kuala Lumpur; 26 Jan 2015
(Syed Rashid Ali, Karachi, Pakistan)  

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