Top Glove market cap rebounds after slipping to below RM60b

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KUALA LUMPUR (Sept 9): Top Glove Corp Bhd's market capitalisation rose back to above RM60 billion at Bursa Malaysia’s afternoon break today after slipping to below the figure in morning trade. Its share price cut losses after falling to its lowest so far earlier today at RM7.12, which valued the company at RM57.89 billion. 

At the 12.30pm break, Top Glove settled down 45 sen or 5.89% at RM7.19, with a market capitalisation of RM62.09 billion. The stock saw some 70 million shares traded.

The glove maker's market capitalisation is based on its 8.13 billion issued shares.

Yesterday, Top Glove closed at RM7.64, giving it a market capitalisation of RM62.11 billion.

In a note today, CGS-CIMB Research analyst Walter Aw wrote that the research house had maintained its "add" call for Top Glove, with a target price (TP) of RM9.20.

"We like Top Glove as a key beneficiary of the current supply-demand dynamics in the glove sector due to Covid-19 as it is the largest glove maker globally by capacity (85.2 billion pieces per annum as at Aug 31, 2020),” Aw said.

Today, Top Glove’s share price fell earlier following the listing of its new bonus shares.

According to the company, the bonus issue has been completed following the listing and quotation of 5.42 billion bonus shares on the Main Market of Bursa and the Mainboard of the Singapore Exchange on Monday.

Chong Jin Hun