KUALA LUMPUR (July 7): Top Glove Corporation Bhd rose as much as 5.23% today, on yesterday’s news that the ringgit was at a 16-year low against the US dollar.

At 10:42am, Top Glove (fundamental: 2.5; valuation: 1.7) was up 33 sen at RM7.02, giving it a market capitalisation of RM4.34 billion. The counter saw some 1.16 million shares done.

Eing Kar Mei, an analyst from CIMB Investment Bank, attributed the counter’s gain in share price to its focus on natural rubber gloves and the stronger US dollar.

“What I can think of is just the stronger US Dollar. Top Glove could be the biggest beneficiary of this, because of their higher exposure to natural rubber gloves, which has less competition. Other than that, a bulk of their raw materials is also in natural rubber, which is denominated in ringgit.

Top Glove is the biggest beneficiary and hence, its share price performance today,” Eing told theedgemarkets.com over the telephone.

As at 10:47am, the ringgit was trading at 3.8075 against the greenback.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)