KUALA LUMPUR (Sept 29): Top Glove Corp Bhd and Kossan Rubber Industries Bhd fell among Bursa Malaysia top decliners on profit taking, as the ringgit strengthened. Top Glove and Kossan shares had earlier gained on the Zika outbreak.

At 12:30 p.m. today, Top Glove declined seven sen or 1.4% to settle at RM5. Kossan fell eight sen or 1.2% to RM6.81.

Top Glove and Kossan were Bursa Malaysia's 10th and fourth-largest decliners, respectively.

"Glove makers have been on the rise, since the news of Zika broke out.

"The strengthening of the U.S. dollar against the ringgit has enhanced the appeal of rubber glove manufacturers over the past years," an analyst told theedgemarkets.com.

Top Glove and Kossan shares gained in recent days. Last Monday (Sept 26), Top Glove shares closed at RM4.82, before rising to RM5.07 yesterday (Sept 28). Kossan shares, which closed at RM6.66 on Monday, climbed to RM6.89 yesterday.

Today, investors took profit on both stocks, as the ringgit strengthened against the U.S. dollar. As these companies sell their gloves in U.S. dollar, a stronger ringgit translates into less revenue in ringgit terms, when they convert their U.S. dollar-denominated income into the ringgit.

At 1:40 p.m., the ringgit appreciated to 4.1182 against the U.S. dollar, as crude oil prices rose. The exchange rate so far today was between 4.1025 and 4.1223.

The ringgit strengthened after the Organization of the Petroleum Exporting Countries' verbal agreement to cap crude oil output. The ringgit tracks crude oil prices, as the commodity forms a crucial portion of the Malaysian economy.