KUALA LUMPUR (Jan 4): With the ban on regulated short selling (RSS) lifted, glove counters came under heavy selling pressure on the first trading day of 2021.

Top Glove Corp Bhd was in the first place today in terms of RSS trading volume, according to data sourced from Bursa Malaysia, with Kossan Rubber Industries Bhd, Hartalega Holdings Bhd and Supermax Corp Bhd trailing behind.

In total, some 168.63 million shares of glove companies worth RM948.42 million were shorted by investors today, with 106.11 million Top Glove shares worth RM573.22 million involved.

Kossan saw an RSS volume of 23.26 million shares worth RM92.1 million, while Hartalega was shorted to the tune of 18.75 million shares worth RM197.56 million. Supermax saw 11.08 million shares shorted at a total value of RM61.75 million.

RSS means investors sell shares without first owning them, but they would have to borrow the shares from Bursa Malaysia's Central Lending Agency through an approved participating organisation or investment bank.

The ban on short selling was imposed by the Securities Commission Malaysia and Bursa Malaysia with effect from March 24 last year amid a global market rout. The move, said the regulators, was "part of their proactive measures to mitigate potential risks arising from heightened volatility and global uncertainties".

The big four glove stocks were also among the top value losers on Bursa Malaysia today.

Hartalega closed 13.67% or RM1.66 lower at RM10.48, valuing the group at RM35.92 billion. In second place was Top Glove which fell 10.13% or 62 sen to RM5.50 for a market value of RM45.11 billion.

Kossan ended 12.44% or 56 sen lower at RM3.94 with a market capitalisation of RM10.11 billion, while Supermax declined 8.32% or 50 sen to RM5.51 for a market value of RM14.99 billion.

The fall in Hartalega, Top Glove and Supermax shares also resulted in the FBM KLCI finishing 1.51% or 24.64 points lower at 1,602.57.

From the perspective of market capitalisation, today's selldown of rubber glove stocks is staggering. Top Glove lost RM3.99 billion in market capitalisation today, Kossan lost RM1.43 billion, Hartalega lost RM5.69 billion and Supermax lost RM1.36 billion.

All in all, RM12.47 billion was wiped out from the cumulative market capitalisation of the big four glove stocks.