Rubber glove sector upgraded to 'overweight'

Maybank IB Research raised its recommendation for the rubber gloves
sector from "neutral" to "overweight," citing the sector as an
affordable healthcare option with falling input costs and growing
demand.

Maybank upgraded Hartalega Holdings Bhd to "buy" and maintained "buy"
calls on Top Glove Corporation Bhd and Kossan Rubber Industries Bhd.

The research house said in a note on Friday that the price of latex has
fallen by 17 percent from a high in February 2012 to RM6.50 per
kilogram.

Thailand, Indonesia, and Malaysia government
initiatives have limited rubber exports to support latex price despite
a surplus in the region that will ultimately bring the price lower,
said Maybank.


The International Rubber Study Group predicted in
March 2012 that a prolonged rubber surplus will occur until 2020,
placing further pressure on rubber prices.

By 0940 (0140 GMT), shares in Hartalega rose 0.23 percent to RM4.29,
Top Glove climbed 0.19 percent to RM5.20 and Kossan Rubber jumped 0.96
percent to RM3.17. The Malaysian benchmark stock index rose 0.05
percent. -- Reuters