Hot Stock: Supermax hit after owner said he supports PR

by **hlk** Tue 30 Apr 2013, 08:26

Written by Ho Wah Foon of theedgemalaysia.com
Monday, 29 April 2013 16:40
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KUALA LUMPUR (April 29): Shares of Supermax Corporation Bhd were
sold down today after its major and controlling shareholder openly
stated that he supports the opposition alliance Pakatan Raykat (PR).
But Top Glove Corporation Bhd, its main competitor which produces
largely similar range of rubber gloves, became one of the top gainers
today.
“My clients are selling Supermax as they believe Supermax will lose
contracts to supply medical gloves to government hospitals if Barisan
Nasional retains power,” said a senior dealer.
“We think Supermax’s losses may be gained by Top Glove. While my
clients respect Thai for his bravery to say what we dare not say, we
have to protect our own investments,” he added.
At 4.11 pm, Top Glove – the world’s biggest producer of rubber gloves
– soared 31 sen or 5% to RM6.45 per unit on trades of 1.59 million
shares. It was still the top gainer in late trades.
But Supermax fell 8 sen or 4% to RM2.00, on 7.8 million shares. The
latter was one of the most active and top losers in morning trades.
Stanley Thai, in an interview with Bloomberg, said he is joining
thousands of fellow ethnic Chinese citizens in “abandoning support for
Prime Minister Najib Razak and voting for the opposition for the first
time in the May 5 general elections.”
“Why are the Chinese against the government -- it’s simple,” Thai, 53, said in an interview last month, which was posted on
Bloomberg last Friday. Local newspapers carried the report over the weekend.
“We don’t want our children to suffer what we suffered, deprived from education, from career opportunities, from business
opportunities,” Thai said.
Supermax, according to Bloomberg report, is the country’s third-largest medical glove-maker, now exports 24 billion gloves a
year.
“We have been brainwashed from Day 1,” Thai was quoted as saying. “We were born and bred with fear and threats by our
own government.”
In recent years, Thai has been hitting out the government on its policy with regards to the rubber glove sector. He is also seen
expanding his manufacturing plants overseas, to as far as South America.