Top Glove shares extended gains on Friday despite a dismal earnings report.
The glove maker is seen still posting losses in the second quarter of fiscal 2023, attributed to high operating costs, low average selling prices and weak sales.
However, the company's expectations of an increase in the average selling price (ASP) returning to pre-pandemic levels and a decrease in inventory seem to be welcomed by the market.
This was reflected in the gains that Top Glove shares posted on Thursday and continued through Friday.
At the opening of the afternoon session, Top Glove jumped 5.39% to 88 sen, with a market value of RM7.13 billion.
In the meantime, analysts also increased their ratings where the latest UOB Kay Hian Research raised the target from 'hold' to 'buy'.
In addition, CIMB Investment Bank Research also believes in the gradual increase in average sales price and sales volume, causing it to upgrade the rating to 'hold'.
