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Glove stock valuations hit rock bottom after US$6 bil rout

Bloomberg
Bloomberg2/25/2021 10:43 AM GMT+08  • 2 min read
Glove stock valuations hit rock bottom after US$6 bil rout
The slump is a far cry from months ago when glove stocks became one of Asia’s hottest trades.
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A rout in Malaysian glove makers is deepening, sending valuations for some companies to rock-bottom levels.

Top Glove Corp., the world’s biggest, slid 7.8% in a fifth day of declines Wednesday, taking its February loss to 22%, set to be the worst for any month on record. The stock is trading at about 6 times 12-month forward earnings, from a record high of 43 times in May. Supermax Corp., which surged 784% last year, is down 26% this month and trades at 4.6 times.

More than US$6 billion ($7.92 billion) in market value has evaporated in February alone for Malaysia’s top four glove makers as global vaccine rollouts accelerate and short sellers swarm these pandemic winners. Malaysia is starting its own Covid-19 vaccination campaign Wednesday, further dampening sentiment.

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