Hartalega among Bursa top decliners as ringgit appreciates

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KUALA LUMPUR (July 15): Hartalega Holdings Bhd's share price fell as much as 12 sen or 2.3% to RM5.10 in afternoon trade while Top Glove Corp Bhd dropped six sen or 1.27% to RM4.67 amid a stronger ringgit against the US dollar.

As these Malaysian glove manufacturers earn US dollar-denominated revenue, a stronger ringgit generates expectation of lower income when the US dollar-based revenue is converted into the ringgit.

"Risks to our call are stiffer-than-expected pricing competition and sharp weakening of US$/MYR (US dollar against ringgit)," CIMB Research analyst Walter Aw wrote in a note today.

At 3:10pm, shares in Hartalega were traded at RM5.12 among Bursa Malaysia top decliners.

At the time of writing, the ringgit was trading at 4.1083 against the US dollar.

Over the last one year, the ringgit had strengthened to current levels against the US dollar after depreciating to its weakest point at 4.2028.