Monday, December 11, 2023

GameStop mania extends to Malaysian glove makers | Financial market news

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The Malaysian online community is creating a buzz around local stocks which have been beaten by large institutional investors.

The manic mania of GameStop Corp. triggered by American amateur traders on Reddit has inspired some Malaysians to form a similar group targeting the stocks of glove makers – one of the hottest trades in the pandemic in Asia in 2020.

The online community called Bursabets was created on Thursday and already has over 4,800 members. Group moderators defined it as the “Malaysian version” of Reddit’s WallStreetBets forum, for discussing stocks listed on Bursa Malaysia. Discussions so far have focused on glovemakers and calls to rally against institutional investors who have kept sector valuations low.

The shares of Top Glove Corp. jumped 15% on Friday, the most since September 11. Rival Hartalega Holdings Bhd. Jumped 10% as Supermax Corp. climbed to 9.2%.

Glove makers have been among Malaysia’s shortest stocks since the country lifted the ban on short selling in early 2021. Vaccine deployments have also undermined the appeal of these pandemic winners.

Malaysian glove maker stock chart [Bloomberg] (Bloomberg)

“I just want the market to realize that valuations are too low and that our glove companies deserve better,” Revenant, one of the group’s moderators, wrote in a message Thursday. “Let’s talk, talk about it, and turn people on!” The moderator said of the Malaysian actions.

A member with the handle u / chen97 posted a meme with a pun on Avengers Assemble, an American animated television series based on the fictional Marvel Comics superhero team known as the Avengers. The meme said, “Retailers are coming together! The game has only just begun! “


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