Top Glove Corp Bhd (+ve)
TRADING of shares in Top Glove Corp Bhd (fundamental: 0.95/3, valuation: 0.5/3) triggered our momentum algorithm last Friday for the fifth time this year.
Top Glove shares closed 4.15% or 27 sen lower at RM6.24, tracking the overall bearish sentiment on Bursa Malaysia. It saw some 21.98 million shares traded, three times more than its 200-day average trading volume of 6.36 million by almost four times.
Last Friday’s losses outstripped gains made a day earlier when the stock gained 3.66% or 23 sen to close at RM6.51.
Year to date, the rubber glovemaker’s share price has risen 33% from Dec 31, 2019. It has been in the limelight since the Covid-19 outbreak, mainly due to the anticipation of higher demand for its rubber gloves.
The group posted a 1.2% increase in net profit for the first financial quarter ended Nov 30, 2019 (1QFY20) to RM111.43 million, from RM110.06 million a year ago, on a higher contribution from the nitrile glove segment. Revenue for the quarter, however, declined 4.2% to RM1.21 billion from RM1.26 billion for 1QFY19 on lower average selling prices.