01/23/2013

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MALAYSIA: CIMB Research keeps positive on glove sector

It said on Tuesday (22 Jan. 2013) as general elections are at hand, glove stocks tend to
be election neutral because revenue and costs are less dependent on domestic politics.

"Glove stocks outperformed the KLCI (Kuala Lumpur Composite Index) in 2012, beating the index by 7.1%. We think Malaysia's OEM glove manufacturers can repeat in 2013 and we upgrade the sector to Overweight.

"We believe glove stocks would be rerated this year by its defensive qualities, the start of LNG imports in 2H13, stable demand for gloves and higher selling prices as costs are passed through. Our top pick remains Hartalega,” said CIMB Research.

Source: Daily "The Star", Kuala Lumpur; 22 Jan 2013

(Syed Rashid Ali, Karachi, Pakistan)

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