5 June 2020, Friday | 08:04pm

Top Glove falls as ringgit strengthens past 4.1 vs US dollar


KUALA LUMPUR (Jan 10): Top Glove Corp Bhd and Supermax Corp Bhd fell among Bursa Malaysia top decliners as the ringgit strengthened past 4.1000 versus the US dollar today. Hartalega Holdings Bhd and Kossan Rubber Industries Bhd erased intraday losses.

At 2:46pm, Hartalega was traded unchanged at RM5 after the stock fell to its lowest so far today at RM4.92. At 2:47pm, Kossan added five sen to RM3.69 after the shares dropped to its lowest so far today at RM3.57.

At 2:50pm, Top Glove fell 12 sen to RM4.68 while Supermax dropped nine sen to RM1.55.

In currency markets, the ringgit strengthened to 4.0988 against the US dollar at 3:11pm. The exchange rate so far today was between 4.0935 and 4.1070. Over the last one year, the ringgit has strengthened to current levels after depreciating to its weakest point at 4.2020.

Today, RHB Research Institute Sdn Bhd analyst Alexander Chia wrote in a note: "Planned industry capacity expansion by the big four glove makers indicate additional supply of c.13% year-on-year in 2019. With global demand growth estimated at c.8% pa, we cannot rule out some deferral of new capacity expansion in the months ahead, as glove makers have no intention of going through a price war that will be detrimental to industry margins."

"Secondly, Malaysia's glove producers' ability to produce high quality gloves at attractive prices on economies of scale with continuous innovation has helped secure market share gains from less efficient producers. Malaysia's market share has improved to 63% currently from 60% 10 years ago," Chia said.


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