Hot stocks: Glove manufacturers rally on news of China’s reopening plans

SHARES of Medtecs International and Top Glove rose amid heavy trading on Tuesday (Dec 27) morning.

As at 10.35 am, Catalist-listed Medtecs gained as much as 19.4 per cent or S$0.035 over last Friday’s close to reach S$0.215, as some 18.9 million shares changed hands.

Meanwhile, shares of mainboard-listed Top Glove rose 5.9 per cent or S$0.015 to S$0.27 as at 10.35 am, with 9.5 million shares traded.

This is despite the group posting a net loss of RM168.2 million (S$51.6 million) for the first fiscal quarter of the year ended November, with the S$0.27 share price the highest the counter has reached since Dec 1.

Shares of Medtecs recorded a similar surge in October, at the same peak of S$0.215. Medtecs had received a query from the Singapore Exchange then, for an explanation of the “unusual price movements”. The company said it was unaware of any activity that could have explained the surge.

Medtecs is a medical protective gear manufacturer, and sells personal protective equipment – including gloves – and face masks. Top Glove is the world’s largest rubber glove maker.

Both counters’ brisk trading comes after China’s Monday announcement of plans to significantly ease its travel restrictions amid ongoing Covid-19 waves that continue to strain the country’s resources and health system.