(Updated)

Genting Bhd up, Top Glove down as Covid enters endemic stage

Genting Bhd up, Top Glove down as Covid enters endemic stage
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KUALA LUMPUR (June 8): Genting Bhd's share price rose while Top Glove Corp Bhd's fell on Wednesday (June 8) as investors weighed the impact of the Covid-19 vaccine-led economic recovery on the tourism and rubber glove manufacturing industries.

Genting's share price closed up 13 sen or 2.5% at RM5.34, valuing the diversified group at RM20.7 billion. The stock was transacted at between RM5.19 and RM5.34. It saw 26.03 million shares transacted.

Top Glove closed down seven sen or 5.6% at RM1.18, after trading between RM1.17 and RM1.26. Some 50.71 million shares were traded. At RM1.18, the group has a market capitalisation of RM9.68 billion.

CGC-CIMB said in a note that Top Glove was the second largest net sell stock for local institutional investors for the week ended June 3, while Genting was the second largest net buy stock.

In contrast, Top Glove was the largest net buy stock for retail and nominee investors, while Genting was the largest net sell stock for retail and nominee investors.

Meanwhile, both Top Glove and Genting were among the top 10 net buy stocks for foreign institutions investors.

Looking back, Top Glove was closely watched as a beneficiary of the Covid-19 outbreak which started in early 2020, as demand for rubber gloves, seen as a crucial piece of personal protective equipment, surged to curb the global spread of Covid-19.

However, Covid-19-driven demand for gloves is now seen normalising as global vaccination progress leads to anticipation that the Covid-19 outbreak can be curbed.

Such sentiment is reflected in Top Glove's share price, which has been adjusted for its two-for-one bonus share issue under which about 5.4 billion new shares were listed and quoted on Bursa and the Singapore Exchange on Sept 7, 2020, according to the company's Bursa filing on that day.

Unlike Top Glove, Genting had to contend with the global Covid-19-driven movement restrictions which disrupted operations in the world tourism industry.

The situation is however different now as global vaccination progress leads to expectation of a revival in the global tourism industry.

According to Genting Bhd's website, Genting Group comprises Genting Bhd and its listed companies; Genting Malaysia Bhd, Genting Plantations Bhd and Genting Singapore Ltd, as well as its principal unlisted subsidiaries Genting Energy Ltd and Resorts World Las Vegas LLC.

At the time of writing, Genting Group has yet to respond to theedgemarket.com's enquiries on the progress of the group's hotel and casino business in tandem with the vaccine-led economic recovery.

Chong Jin Hun & S Kanagaraju