Amlnvestment Bank Research predicts that the glove sector does not have the strength to accommodate the large amount of supply stocks.
The implementation of US President (US) Donald Trump's tariffs on Chinese glove products has not provided any benefit to the local industry in bearing the surplus of products.
The firm also reiterated its "underweight" rating on the sector because Trump's tariffs have not had a significant impact on Chinese manufacturers despite being considered positive.
Furthermore, Amlnvestment remains cautious about the future of the local glove industry, especially involving supply factors and cost inflation.
Amlnvestment maintains its underweight recommendation on Top Glove (TP 68 sen), Kossan (TP RM1.60) and Hartalega (TP RM2.30).
Overall, the US market is expected to face long-term price pressure due to tariffs on Chinese products.
