Glove Makers Rally: Malaysian glove stocks, including Top Glove Corp. and Hartalega Holdings Bhd, surged on Tuesday, as the U.S. finalized higher tariffs on Chinese goods, particularly medical products. Top Glove jumped by 32%, its biggest gain ever, while Hartalega hit the 30% trading limit. The rally comes after Thailand’s glove makers saw similar gains earlier in the week, positioning Southeast Asian producers to benefit from the tariff hikes.
U.S. Tariffs to Climb: The Biden administration is set to implement tariffs on Chinese medical gloves, increasing from 50% in 2025 to 100% in 2026, up from a 25% hike proposed in May. The faster-than-expected implementation is aimed at reducing reliance on Chinese imports and could drive a resurgence for Malaysian glove manufacturers. According to Citi, these tariffs provide a significant boost to Southeast Asian markets, which are already benefiting from expectations of a Federal Reserve interest-rate pivot.
Market Sentiment Shifts: Analysts are optimistic about the sector’s post-pandemic recovery. The new tariffs are expected to help Malaysian glove makers reclaim market share from Chinese competitors. Jack Goh, an analyst at UOB Kay Hian, noted that domestic producers could see renewed interest from investors, especially as the demand for surgical gloves stabilizes. Shares of Kossan Rubber Industries and Supermax Corp. also jumped by 26% and 27%, respectively.
This revival harks back to the early pandemic days when glove makers were market favorites, dominating investments in the Malaysian stock market. Several analysts, including those at Bloomberg, have already upgraded their outlook on the sector, signaling renewed confidence as profits start to recover.
