Top Glove jumped as much as 32 per cent, the most ever, while Hartalega Holdings Bhd rallied by the 30 per cent limit. The gains come a day after Thailand peers spiked, as analysts point out that Southeast Asian producers will be the main beneficiaries. Malaysia’s market was closed for a holiday on Monday.
Tariffs on billions of dollars in Chinese goods, including medical products, are being finalised by President Joe Biden’s administration following a proposal to raise levies in May, an official said late last week. The new tariffs are higher and will be implemented more quickly than expected, according to Citigroup Inc.
US tariffs on Chinese medical gloves will rise to 50 per cent in 2025 and 100 per cent in 2026, Citi analysts wrote in a report. That’s up from a 25 per cent hike proposed in May, which was to take effect in 2026.
The tariffs are “poised to revitalise investors’ sentiment on the Malaysian glove sector,” Jack Goh, an analyst at UOB Kay Hian Pte., wrote in a report. “With the sector’s post-pandemic recovery eclipsing earnings amid demand moderation, domestic glove makers should progressively reclaim market share from China.”
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