Friday 29 Mar 2024
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KUALA LUMPUR (July 16): Top Glove Corp Bhd's share price fell below RM20 in afternoon trades today after it confirmed the US Customs and Border Protection (CBP) had yesterday placed a detention order on disposable gloves manufactured by two of its subsidiaries, namely Top Glove Sdn Bhd and TG Medical Sdn Bhd.

At 3:30pm, Top Glove's share price fell RM2.l0 or 9.63% to RM19.70 with some 27 million shares traded. Top Glove was Bursa Malaysia's top decliner.

In a statement to Bursa Malaysia today, Top Glove said it is reaching out to the CBP through the glove producer's office in the US besides the company's customers and consultants, to understand the issue better and work towards a speedy resolution on the matter within an estimated two weeks.

Investors sold Top Glove shares today as the news hit market sentiment after they took into account the North America region, comprising Canada and the US, is a crucial market for the company.

The North America region accounted for the largest share or 27% of Top Glove's sales volume during financial year ended Aug 31, 2019 (FY19), according to the company's latest annual report.

For FY19, Top Glove said its rubber glove sales volume in North America rose 20.3% from a year earlier although the quantity sold was not specified.

Top Glove's management was not contactable at the time of writing.

At Bursa today, Top Glove's securities trade resumed following a suspension between 2:30pm and 3:30pm in conjunction with the detention order announcement, which appeared on Bursa's website during the exchange's 12:30pm to 2:30pm break.

Prior to the suspension, Top Glove's share price settled down 56 sen or 2.57% at RM21.24 at 12:30pm for a market capitalisation of RM60.74 billion.

The stock saw some 26 million shares traded then.

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