STA and STGT plunged further on Tuesday as the COVID-19 situation in Thailand is improving, resulting in a fall in demand for rubber gloves.
As of 15:31 local time in Thailand, the share price of Sri Trang Agro-Industry Public Company Limited (STA) dropped ฿1.50/share or 4.23% to ฿34.00/share, with a trading value of 668 million baht.
Meanwhile, the share price of Sri Trang Gloves (Thailand) Public Company Limited (STGT) dropped ฿1.00/share or 2.90% to ฿33.50/share, with a trading value of 1,057 million baht.
According to Finansia Syrus Securities, STA’s share price has fallen in line with that of its subsidiary STGT as the COVID-19 situation in Thailand recovers, resulting in a decrease in demand for rubber gloves. As a result, earnings are expected to slow in the second half of this year after reaching a peak in 2Q21, and the global rubber price dropped in September compared to August.
UOBKayHian Securities assessed that the overall outlook for rubber glove companies will continue to be weighed down by the anticipated slowdown in performance as the COVID-19 situation improves. In the short term, it will be disadvantaged by the United States lifting its import ban on Malaysia’s Top Glove due to concerns about forced labor.