‘Is it time for investors to move to other sectors perhaps?’
The outlook for Malaysian rubber gloves looked bleak as shares of major manufacturer Top Glove slipped below RM1 after falling to 97 sen daily.
Apart from that, Hartalega Holdings Bhd shares were also seen plunging below RM3 despite the market rising.
This is due to the low demand factor compared to during the deployment of Covid-19, which saw the situation return to normal.
As of noon yesterday, Top Glove shares were down 3 sen (2.97% at RM1.01 with 35 million shares traded while Hartalega was down 4 sen (1.34%) at RM2.94 with 4 million shares trading hands.
During the midday break as well, a total of 30 KLCI stocks were seen rising 9.22 points (0.63%) at 1,468.27 while the Healthcare gauge gained 0.09%.
According to the Bursa filing, analysts said the healthcare sector was bearish and recommended a ‘sell’ status for hospital operators as well as pharmaceutical companies.
It is said that 57% of analysts put a ‘sell’ status on Top Glove while 75% put a ‘buy’ status on IHH Healthcare Bhd.
As the healthcare sector collapsed, the energy sector was seen to be gaining traction with 89% of analysts placing a ‘buy’ status while the remaining 11% decided ‘hold’.
Meanwhile, the technology sector and industrial products are also seen receiving ‘buy’ recommendations over ‘sell’ or ‘hold’.
Meanwhile, the outcome of yesterday's FOMC meeting saw the Federal Reserve (Fed) raise interest rates by 75 basis points, the biggest increase since 1994, in an effort to stem rising inflation.
It has indirectly caused equities to soar to the point of overflowing into the local market this morning, apart from focusing on Bank Negara Malaysia's (BNM) reaction to its monetary policy in the future.
