Top Glove Shares Plunge To Lowest Level Since May 2020 - Kakiforex.com - Financial Market Media No. 1 in the World Top Glove Shares Plunge To Lowest Level Since May 2020 Top Glove Shares Plunge To Lowest Level Since May 2020
InstaForex

September 13, 2021

Top Glove Shares Plunge To Lowest Level Since May 2020

Top Glove’s share price was unable to sustain its aggressive upward pace last Friday after the ban on exporting to the U.S. was lifted by U.S. Customs and Border Protection (GST).


At 12.29pm, the counter declined again by 3.79% to RM3.30 a deck as trading volume was seen as weak and slow despite opening higher at RM3.47.


The level is also the lowest level since May 2020 and analysts expect it to test the RM3 level if it continues to decline given the current unfavorable operating conditions.


Kenanga Research said the pull of the ban was good news as the US accounted for more than 90% of Top Glove sales to the North American market.



The US market is seen to have accounted for 18% to 21% of Top Glove’s export sales.


Meanwhile, Kenanga issued an expectation that Top Glove will achieve a net profit of the highest level of RM8.58 billion in the next financial quarter.


Top Glove management also expects sales to the U.S. to take about three months for sales rates to return to normal as before.


Yet KAF Equities is of the opinion that it may not recover as usual and it is quite difficult for it to achieve it given the current market conditions.


Meanwhile, AmInvestment Bank said ASP would remain in decline in the second half of 2021 following higher supply of incoming gloves in the near future.