Top Glove share price up ahead of quarterly financial announcement today

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KUALA LUMPUR (Sept 17): Top Glove Corp Bhd’s market capitalisation topped RM70 billion again as its share price rose among Bursa Malaysia top gainers in morning trades ahead of the company’s announcement today of its fourth-quarter and full-year results for the financial year ended Aug 31, 2020 (FY2020).

At 9:17am today, Top Glove’s share price rose 25 sen or 2.97% to RM8.68 after the stock was traded between RM8.82 and RM8.50 so far today. The stock saw some 17 million shares traded.

At RM8.68, Top Glove has a market capitalisation of RM70.92 billion based on the company’s latest number of issued shares at 8.17 billion units.

Malaysian markets resumed trading today after markets were closed yesterday (Sept 16) in conjunction with the Malaysia Day holiday.

On Tuesday (Sept 15), Top Glove’ share price closed at RM8.43 for a market capitalisation of RM68.87 billion.

Top Glove is a constituent of the 30 stock FBM KLCI, hence the company’s share price movement affects the direction of the broader market.

Today, analysts said Top Glove’s FY20 results release will be closely watched.

"The local market should stage profit-taking consolidation, pending release of the closely-watched corporate results from Top Glove for guidance on the outlook for the rubber glove industry,” TA Securities Holdings Bhd analysts wrote in a note today.

Hong Leong Investment Bank Bhd analyst Ng Jun Sheng wrote in a note today the KLCI should extend gains, led by further buying interests on glove stocks.

"KLCI should extend gains today, led by further buying interests on glove stocks in anticipation of Top Glove’s robust 4QFY20 results today (at 12.30pm followed by a conference call at 3.30pm) as well as expectations of a buoyant outlook ahead, discounting the nagging concerns of a potential windfall tax and discovery of Covid-19 vaccines. 

"Moreover, glove demand is unlikely to taper off amid worries of a Covid-19 resurgence towards the wintering period in 4Q20 (calendar year) and potential surge in demand when masses rush to be vaccinated,” Ng said.