Rubber Glove Sector Update : Longer-Term Outlook Still Positive - 13/08/2010

Recent events may dampen near-term sentiment for rubber glove manufacturers. As highlighted earlier, we believe near-term sentiment for rubber glove manufacturers could be dampened by recent events such as Orders slowing down. Seasonally, 2Q (Mar-Jun) tends to be a slower period in terms of orders. Coupled with latex prices hitting an all-time high of RM7.78/kg in Apr ’10, orders slowed down even more as customers became more conservative with respect to inventory levels during the quarter and in anticipation that latex prices would eventually come down; and

Rubber Glove Sector Update : Longer-Term Outlook Still Positive - 13/08/2010