Stocks of Malaysian rubber gloves makers have recently soared up. The coronavirus pandemic, which has been going on since the beginning of the year, has triggered an unprecedented increase in the value of Supermax and Top Glove shares by 1,000% and 389%, respectively. Such rapid growth of latex gloves business is making dizzying rallies of most of the largest tech companies look like an under-performance. Even the stocks of the famous and very popular car manufacturer, Tesla, cannot compete with a jump in rubber glove stocks. The value of Tesla's shares rose only by 259%.
Kossan Rubber is another latex manufacturer from Malaysia that has been posted the meteoric rise in its net income. Its stock price has ballooned by 225% for the first time in the entire history of this industry in the country.
These top three rubber glove makers managed to add about 109 billion ringgit ($26 billion) in combined market value this year. Curiously enough, it means that about one-tenth of the US dollars invested in the nation's stock market is a bet on gloves. Notably, such an impressive increase in the market value of the latex companies gets them one step closer to be included in the key stock indexes that are hugely popular among investors from all over the world.
According to experts, the prospects for further development of the latex business in Malaysia look much more promising today compared to Tesla. Remarkably, the car manufacturer has also been able to boost its profit amid the COVID-19 pandemic. Experts also note that the glove manufacturing sector remains undervalued. In the next year, companies in this industry may double or even triple their already high income.
The owners of Supermax and Top Glove have been added to the list of dollar billionaires.
