(Updated)

Top Glove down 11 sen after Bursa uplifted dynamic price threshold of structured warrants

Top Glove down 11 sen after Bursa uplifted dynamic price threshold of structured warrants
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KUALA LUMPUR (Sept 21): Top Glove Corp Bhd shares were down by 11 sen or 3.92% to RM2.70 at 3.20pm after Bursa Malaysia uplifted the dynamic price threshold mechanism for the counter’s structured warrants TOPGLOV-HH from 12.20pm to 12.30pm today.

“During this period, orders can be matched within 30%/30 sen up and down of the reference price. 

“The reference price is 17.5 sen and the upper and lower limits are 47.5 sen and half a sen respectively,” the local bourse announced on its website.

Yesterday, Top Glove shares closed below the RM3 threshold for the first time since May 2020 after the company posted weaker earnings for the fourth quarter ended Aug 31, 2021 (4QFY21).

The counter continued to slip by opening lower at RM2.76 from yesterday’s close at RM2.81.

Analysts have downgraded their target prices (TPs) for the world’s largest rubber glove manufacturer against a backdrop of weaker earnings as well as normalising glove demand and average selling prices (ASPs).

Top Glove’s earnings for 4QFY21 dropped 70% quarter-on-quarter (q-o-q) to RM608 million due to lower ASPs and volume, while higher supply from China and Thailand also took a toll on ASPs.