Top Glove Corp Bhd rose as much as 8.4% or 8 sen to RM1.03 earlier today, Hartalega Holdings Bhd was up as much as 6.3% or 17 sen at RM2.86, Kossan Rubber Industries Bhd rose 7% or 14 sen at RM2.14 while Supermax Corp edged up 5.7% or 5 sen at 92 sen.
Since WHO declared mpox an international health emergency last Wednesday, Top Glove has risen as much as 12% year-to-date (YTD), Hartalega (8.3%), Kossan (13.8%), and Supermax (8.2%).
In a note today, UOB Kay Hian said there may be increased trading sentiment on the local glove sector as demand for medical products may surge if mpox escalates into a worrying outbreak.
The research house noted that glove stocks still have upside, solely on fundamentals, even without taking mpox into account.
UOB Kay Hian, which maintained its “tactically overweight” rating on the glove sector, has “buy” calls on Top Glove, Hartalega and Kossan.
The last time the world experienced a major health emergency was the Covid-19 pandemic in late 2019. As the Covid-19 outbreak encircled the globe in the following months, glove stocks on Bursa reached stratospheric levels with the shares of some soaring as much as 10-fold as demand for medical gloves surged.
However, the upsurge started petering out before the end of 2020 as the global glove supply situation turned from an acute shortage to a glut as more players jumped on the glove bandwagon.
This precipitated a crash in the share prices of Malaysian glove stocks with some falling as much as 80% to 90% from their pandemic peak. The glove players are only starting to recover in the past year and would undoubtedly relish a return of the good times with WHO’s latest pronouncement.
Déjà vu for glove stocks?
However, having a Covid-like boost to their share prices is unlikely as this is not the first time the United Nations body has declared mpox a global public health emergency.
It made a similar declaration two years ago on July 23, 2022, and rescinded it on May 11, 2023 after a sustained decline in global cases.
The global health impact of mpox was very muted compared to Covid-19. This was also reflected in the share price movement of the glove counters on Bursa during the period.
For example, Top Glove was at the 99.5 sen level when WHO made its mpox declaration in late July 2022. It ended only 6.5% higher at RM1.06 when WHO rescinded its declaration some nine months later.
Caused by an orthopoxvirus, mpox was first detected in humans in 1970, in the Democratic Republic of Congo. The disease is considered endemic to countries in central and West Africa.
The mpox may manifest itself as fever, severe headache, lymphadenopathy (swelling of the lymph nodes), muscle pain, backache, rashes, and intense fatigue.
WHO outlines that up to a tenth of persons ill with mpox may die, with most deaths occurring in younger age groups.
The ministry of health has said it will increase surveillance at Malaysia’s international entry points. Government and private health facilities now need to notify suspected and confirmed cases of mpox immediately.