Malaysian Glove Makers Rally on U.S. Health Bill

Thursday, March 25, 2010

According to an article in bloomberg.com by Chan Tien Hin, "Top Glove Corp. rose to a record, leading a rally by Malaysian rubber glove makers on speculation President Barack Obama’s U.S. health bill will boost sales. Top Glove, the world’s biggest, climbed 2.9 percent to 13.30 ringgit at the close in Kuala Lumpur. Kossan Rubber Industries Bhd., the nation’s third-largest, increased 3.6 percent to 7.68 ringgit, and Adventa Bhd. gained 2.9 percent to 3.50 ringgit.

The benchmark FTSE Bursa Malaysia KLCI Index rose 0.4 percent. Obama’s $940 billion overhaul of U.S. health legislation subsidizes coverage for uninsured Americans, financed by Medicare cuts to hospitals and fees or taxes on insurers, drugmakers, medical-device companies and Americans earning more than $200,000 a year.

The bill may “lead to higher demand for examination gloves in the U.S. when Americans start to visit health-care centers more frequently,” Jason Yap, an analyst at OSK Research Sdn, said in a report today [March 24]. It will “put more strain on the supply of examination gloves, which is still catching up with demand.”