Friday 02 Jun 2023
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KUALA LUMPUR (July 16): Top Glove Corp Bhd reversed its upward trend in the morning amid news that there was a detention order on its disposable gloves at the US customs yesterday.

The list released by the US Customs and Border Protection showed that the status of the detention order on Top Glove Sdn Bhd and TG Medical Sdn Bhd was "active" as of yesterday.

Top Glove's share price dived from the day's high of RM23.50 at around 10am to close at RM21.24, down 56 sen or 2.57% against yesterday's closing of RM21.80.

Its trading volume was 25.7 million shares in the morning session.

Credit Suisse — which raised its target price (TP) to RM37 yesterday — in a short note to clients highlighted that for WRP Asia Pacific Sdn Bhd, another glove maker in Malaysia which was previously on the list, the detention order was revoked after evidence of no forced labour condition.

Nonetheless, it commented that the news is likely to dampen the sentiment on Top Glove until the issue is resolved.

WRP was put on the detention list on Sept 30 last year. The detention order was revoked about six months later on March 24 this year.

The North America region, comprising Canada and the US, accounted for the largest share or 27% of Top Glove's sales volume during financial year ended Aug 31, 2019 (FY19), according to the company's latest annual report.

For FY19, Top Glove said its rubber glove sales volume in North America rose 20.3% from a year earlier although the quantity sold was not specified.

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