TOP GLOVE has vaulted past Public Bank Bhd to become the second-most valuable stock on Malaysia's equities benchmark, capping a dizzying rally by the rubber glove maker.
Shares of Top Glove, which ranked near the bottom of the FTSE Bursa Malaysia KLCI Index at the start of the year, closed on Thursday with a market value of RM70.4 billion, exceeding Public Bank's RM69.5 billion.
The astonishing surge in Top Glove's shares has closed the RM63 billion gap at the beginning of 2020 between its market capitalisation and that of Public Bank, the nation's third-largest lender by assets.
Glove makers have been standout performers in the wake of the global pandemic as they benefited from supernormal demand, burnishing their investment appeal.
Standing in the way of Top Glove's pursuit of the top seat is Malayan Banking Bhd, the nation's largest lender with a market value of RM88.6 billion.
"Top Glove and its peers can become the biggest companies in Malaysia in a short time because of the demand boost from the pandemic," said Danny Wong, chief executive officer at Areca Capital Sdn Bhd.
Southeast Asian investors should add gloves in their portfolios or they would underperform the market this year and maybe next, he said.
Top Glove shares have risen 456 per cent this year, while Public Bank and Malayan Banking have declined 7.8 per cent and 8.8 per cent, respectively.
Source: New Straits Times https://bit.ly/2ZWG6fz