Hartalega, Top Glove shares fall as ringgit strengthens

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KUALA LUMPUR (Jan 8): Shares of rubber glove manufacturers Hartalega Holdings Bhd, Top Glove Corp Bhd, and Kossan Rubber Industries Bhd fell among Bursa Malaysia's top decliners as the ringgit strengthened.

At 10:47am, Hartalega shares were down 24 sen at RM5.51, Top Glove declined 17 sen to RM5.13 while Kossan fell 17 sen to RM4.08.

In currency markets, the ringgit strengthened to 4.1065 against the US dollar at 10:52am. The exchange rates so far today are between 4.1055 and 4.1130.

Over the last one year, the ringgit has strengthened to current levels after depreciating to its weakest point at 4.2020.

The ringgit's strengthening against the US dollar is perceived to be negative for Malaysian exporters including rubber glove manufacturers because a stronger ringgit makes local products more expensive in world markets.

A stronger ringgit also means Malaysian exporters' US dollar-denominated revenue will be less in ringgit terms upon conversion to the Malaysian currency.