Selling pressure on the glove stocks has yet to dry up, wiping off market capitalisation of RM27.65 billion from the big four manufacturers, namely Top Glove Corp Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd.
The selldown has intensified since last Monday (Feb 22) as reflected by the loss of RM20.57 billion in market value among the big four glove makers based on their closing prices on Tuesday. Malacca Securities Sdn Bhd head of research Loui Low told The Edge that the selldown was due to the news flow on vaccinations over the past two weeks.
Top Glove Corp Bhd, the world’s biggest, slid 7.8 per cent in a fifth day of declines Wednesday, taking its February loss to 22 per cent, set to be the worst for any month on record.
A rout in Malaysian glove makers is deepening, sending valuations for some companies to rock-bottom levels. Top Glove Corp Bhd, the world's biggest, slid 7.8 per cent in a fifth day of declines Wednesday, taking its February loss to 22 per cent, set to be the worst for any month on record. The stock is trading at about 6 times 12-month forward earnings, from a record high of 43 times in May.
In the health-care industry, the coronavirus pandemic led to big fortunes, fast. Now some of them are evaporating just as quickly. Take Seegene Inc., a maker of Covid-19 test kits, and Alteogen Inc., a biotech with subcutaneous-injection technology. Their founders became billionaires as the shares surged last year. Fast forward a few months to the vaccine rollout, and they’ve lost their title after both stocks sank more than 40%, according to the Bloomberg Billionaires Index.
In a filing to Bursa Malaysia today, the company said the increase in net profit in Q4 was due to higher volume of gloves sold and better average selling prices.
KUALA LUMPUR: Kossan Rubber Industries Bhd's net profit increased more than seven fold to RM523.49 million for the fourth quarter (Q4) ended December 31, 2020 from RM61 million recorded in the same quarter a year ago.
In a filing to Bursa Malaysia today, the company said the increase in net profit in Q4 was due to higher volume of gloves sold and better average selling prices. Revenue in the same quarter more than doubled to RM1.31 billion from RM578.35 million.