(April 7): Foreign investors are using the selloff in Malaysian glove makers to return to last year’s stock market stars.

Top Glove Corp and Supermax Corp are among the top three stocks on the buy list of foreigners this year through April 2, attracting net inflows of 1.4 billion ringgit (US$340 million), according to CGS CIMB Research. Global funds bought a net 189.9 million ringgit of Press Metal Aluminium Holdings Bhd, the brokerage said in a report.

Shares of glove makers were one of Asia’s hottest pandemic trades for much of 2020, before the rollouts of vaccines around the world weakened their appeal and became targets of short sellers. The three biggest glove stocks, including Top Glove Corp, are the worst performers in Malaysia’s benchmark equity gauge this year.

“There is still significant value to be derived from Malaysian glove players, which command 65%-68% of the global market share,” Kenanga Investment Bank Bhd said in a report. Glove stocks are trading at “unwarranted” 6 times to 10 times 2022 price-earnings ratios and offer dividend yields of 6%-8%, it said.

Top Glove rose 2.9% and Supermax climbed 2.3% at the close on Wednesday. They have slid more than 50% from their October peaks, dragging valuations to rock bottom levels. Top Glove trades at about six times forward 12-month earnings, versus its one-year mean of 15.3 times. Supermax is priced at 3.8 times compared with its average of 15 times, Bloomberg-compiled data show.