Kenanga ups rubber glove to 'overweight'

Kenanga Research upgraded Malaysia's rubber glove sector to
'overweight'
from 'neutral' rating, citing resilient demand for rubber gloves and a
possible surge in bird flu incidents among reasons.

"If the H7N9
bird flu virus cases deteriorate, there would be a high likelihood of a
pent-up demand for rubber gloves," the research house said in a
research note on Monday.

New cases of the H7N9 bird flu virus
traced in China could further underpin the importance of hygiene and
thus potentially increase the demand for examination rubber gloves,
Kenanga added.

It said its top pick in the sector was Kossan
Rubber Industries Bhd, citing undemanding valuation compared with its
larger peers such as Top Glove Corp Bhd and Hartalega Holdings Bhd.

Shares
of Kossan rose 0.77 per cent to RM3.92, while Top Glove climbed 0.49
per cent to RM6.20 and Hartalega remained unchanged at RM5.29.-- Reuters