Hot Stocks: Hartalega and Kossan rise for different reasons (the edge,27sep,Friday) 1.Hartalega Holdings Bhd saw its share rise as much as 1.2% today, following a positive review by a research house on itsglove production expansion plan and implementation. At 2.55 pm today, Hartalega shares rose 8 sen or 1.1% to RM7.51, with 105,700 shares done. MIDF Research, after a recent meeting with the company’s management,said Hartalega will benefit from the appreciation of the US dollar, resilient demand for nitrile gloves and the lower raw material prices.The research house is also upbeat on the company’s soon-to-be completed Phase 1, Next Generation Integrated Manufacturing Complex (NGC), as the plant is progressing ahead of schedule. With construction of first production line to start in April next year, Hartalega is expecting to increase its glove production capacity to 16 billion pieces by end FY15 and 21-22 billion by end FY16, it added. This will in return increase Hartalega’s capacity to a strong 42.4 billion, it said.The NGC is expected to be fully completed by 2022. 2.Meanwhile, Kossan Industries Bhd also rose in afternoon trades. The stock rose 14 sen or 2.15% to RM6.66 per share on trades of 137,000 shares. It was one of the top 10 gainers. Earlier this month, the company proposed a one-for-one bonus issue, which was granted conditional approval by the Securities Commission on Tuesday (Sept 24). Hartalega and Kossan rose despite a downgrade on the glove sector by several major research houses this week, saying that rated stocks are fully valued now. Top Glove Corporation Bhd and Supermax Corporation Bhd, which had been sold down since the sector downgrade, also rose marginally today
Posted on: Fri, 27 Sep 2013 08:28:31 +0000
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