Daily Management Review

Glovemaker companies surpass Tesla in growth


The price of shares of Malaysian companies, which are engaged in the production of rubber and latex gloves, has risen in the current 2020 more than the shares of the American electric car manufacturer Tesla, according to Bloomberg.

In particular, papers of Supermax Corp. increased in price by more than 1000%, papers of Top Glove Corp. went up by 389%. Tesla shares rose only 259%.

This explosive growth was due to the COVID-19 coronavirus pandemic, as well as the ensuing surge in demand for personal protective equipment.

The agency also notes that such an increase in shares of local companies has become unprecedented for Malaysia: three leading glove manufacturers at once increased their total market value by $ 26 billion.

Currently, the agency explains, every dollar in ten invested in the Malaysian stock market is invested in the production of gloves.

"Gloves growth resembles many [the growth] of Tesla, but the sector's revenue outlook is stronger than Tesla's," commented Ross Cameron, fund manager at Northcape Capital Ltd., noting that glovemaker profits are expected to rise by more than 100% in 2021. 

source: bloomberg.com