Top Glove, Hartalega pare losses after final-hour slump

-A +A

KUALA LUMPUR (July 14): Share prices of FBM KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd slumped as much as 15% during the final hour of trading today before paring losses when markets closed.

At 5pm, Hartalega ended down 90 sen or 5.03% at RM17 after falling as much as RM2.62 or 15% to RM15.28.

Top Glove finished 84 sen or 3.5% lower at RM23.16 after dropping as much as RM3.50 or 15% to RM20.50.

Hartalega was Bursa Malaysia's top decliner followed by Top Glove.

MIDF Amanah Investment Bank Bhd analysts wrote in a note today that MIDF expects earnings outlook for glove makers to remain positive in the second half of 2020 (2HCY2020), due to continuous upward revision in glove average selling prices besides favourable foreign exchange, as well as raw material prices.

"We opine that the tight supply situation in the gloves industry would continue in the medium term. Nevertheless, we believe that the positives have been largely priced in following the good run in share prices of glove counters, which had made the glove counters trading above its multiple year +2 standard deviation PER (price-earnings ratio).

"Hence, we maintain NEUTRAL on the sector," they said.