MIDF ups rubber glove sector to 'positive'

MIDF Research raised its call on the Malaysian rubber glove sector to
"positive" from "neutral" on the back of healthy exports and strong
demand seen for the rest of the year.

The research house said
nitrile prices are expected to remain depressed over the next few
months, making it cheaper for glove producers as nitrile usually chalks
u p to 60 percent of production costs.

"With the easing of
latex and nitrile prices, sustainable demand growth, and relatively
stronger USD, we anticipate the profitability of rubber glove producers
to improve substantially in 2HCY2012," MIDF said in a note on Wednesday.

MIDF
kept its "buy" ratings on Top Glove Corporation Bhd , Kossan Rubber
Industries Bhd, Hartalega Holdings Bhd and Supermax Corporation Bhd.

"We expect the glove players will each benefit significantly from the much-improved operating environment," MIDF said.- Reuters