Shares of rubber glove and technology companies experienced declines on Bursa Malaysia on Monday, as investors engaged in profit-taking following recent gains in the glove sector and amidst caution in semiconductor stocks.
Leading technology counters such as Inari Amertron Bhd dropped around 4% to close at RM2.55, making it one of the most actively traded shares during the session. Similarly, Top Glove Corp Bhd, a major player in the glove industry, fell about 3% to 73 sen. Other semiconductor-related firms also saw decreases, with Malaysian Pacific Industries Bhd retreating 4.5% to RM42.20, and Hartalega Holdings Bhd declining 4.55% to RM1.05.
Market participants remained cautious as elevated United States Treasury yields and ongoing geopolitical tensions continued to dampen investor risk appetite. Despite the tentative sentiment, analysts maintain a positive outlook on select segments, especially within the technology sector.
Research from CGS International (CGSI) highlighted expectations for stronger fourth-quarter financial year 2026 (4Q26) earnings for UWC Bhd. This outlook is supported by accelerated production ramp-ups among key semiconductor customers engaged in both front-end and back-end processes, buoyed by robust global capital expenditures in memory technology. The firm anticipates even more significant growth in the first half of financial year 2027 as improved availability of engineers and foreign workers facilitate faster production increases. CGSI further affirmed a constructive medium to long-term perspective for the semiconductor industry, underpinned by steady artificial intelligence (AI) demand alongside continued capital investments from hyperscalers, logic foundries, and memory manufacturers. However, the research acknowledged that short-term market sentiment might still be vulnerable to macroeconomic uncertainties.
Similarly, BIMB Research on September 25 cited ongoing strength in ViTrox Corp Bhd’s earnings, driven by sustained demand linked to AI and data center investments. The firm noted that this current semiconductor upcycle appears more sustainable than the surge experienced during the COVID-19 pandemic. BIMB Research emphasized the healthy order backlog and positive capital expenditure trends across the AI ecosystem as reasons to believe the ongoing earnings cycle has further room to develop.
In contrast, the rubber glove sector saw some selling pressure as investors took profits after a strong rebound earlier in the month. The earlier rally had been supported by improving average selling prices (ASPs) and a reduction in competitive pressures from Chinese manufacturers.
Phillip Capital Research reported on September 23 that Top Glove’s underlying demand remained stable, with price fluctuations rather than a decline in orders representing the main industry challenge. Orders have generally held firm since July, with a slight increase recently attributed to restocking ahead of anticipated price hikes. The research house predicted that Top Glove would increase nitrile glove prices by US$2 to US$2.50 per 1,000 pieces in October, followed by a further rise of US$1.50 to US$2 in November to offset higher raw material and energy costs.
Phillip Capital also noted signs of more disciplined pricing among Chinese glove producers, who appear to be moving away from aggressive discounting to gain volume. This dynamic has narrowed Top Glove’s price premium to around 50 US cents per 1,000 pieces, down from a range of US$1 to US$1.50 seen in financial year 2025. Reflecting these developments, Phillip Capital upgraded its rating on Top Glove from “sell” to “hold,” revising the target price upward from 60 sen to 75 sen.