Will SUPERMX (7106): SUPERMAX CORP BHD join FBM KLCI?
Countries are running out of gloves and have to purchase even more to overcome the incoming shortage.
For next 2-3 years, glove manufacturers will have to even more gloves compared to this year. Eventually, price will increase over time and the simple answer to that is because of the decreasing amount of raw rubber latex materials to produce it.
It is expected that the demand will be higher than 350b gloves next year according to Careplus annual report 2020. What's next?
Author: | Publish date: Sun, 29 Nov 2020, 10:00 PM
Despite the many comments of vaccines arriving soon and that the price of glove companies going to fall.
RHB reported otherwise, that glove industry be bullish as vaccine deployment could boost global usage by up to 7%
(19 Nov 2020)
Existing and New glove manufacturers are expected to benefit from the rise in demand.
Reference:
1.
https://www.theedgemarkets.com/article/covid19-rhb-says-vaccine-deployment-could-generate-demand-18-billion-pieces-gloves-year#:~:text=Lim%20said%20RHB%20maintained%20its,outlook%20for%20gloves%20remains%20positive.&text=%22A%20vaccine%20deployment%20itself%20could,7%25%2C%E2%80%9D%20he%20said.
2.
https://www.proactiveinvestors.com.au/companies/news/934565/rhb-bullish-on-glove-industry-as-vaccine-deployment-could-boost-global-usage-by-up-to-7-934565.html
Putting that aside, lets focus on Supermax. Will it join FBM KLCI?
The answer is yes.
According to the news, the next KLCI review result is due on Dec 3 and the changes will be effective on Dec 21.
Analysis revealed that Supermax is likely to be included in KLCI.
It is noted that Supermax had risen to the 24th position, hence qualifying to be included into the index.
Reference:
https://www.thestar.com.my/business/business-news/2020/11/24/supermax-likely-to-join-fbm-klci-in-next-review
As many would know, the share price of Supermax should increase by at least 10% in December-January.
With that said, to those who are holding Supermax (current price: $8.52)
Hold it tightly until then.
https://klse.i3investor.com/blogs/rubberglove_y2023/2020-11-29-story-h1537322847-Will_Supermax_7106_join_FBM_KLCI.jsp
