Top Glove Corp Bhd has enjoyed a meteoric rise on Bursa Malaysia with a massive 447.1% gain year-to-date, moving from the tail-end of the FBM KLCI to the number three spot, generating investor buzz and speculation on whether it will be able to grab the top spot from Malayan Banking Bhd .
Top Glove stock’s resilience is evident as it emerged fairly unscathed from the US Customs and Border Protection’s decision to place gloves manufactured by two of its Malaysian subsidiaries, Top Glove Sdn Bhd and TG Medical Sdn Bhd, on the detention list on July 16, which led to a 9.6% decline in Top Glove’s share price to RM19.70 from a previous close of RM21.80.
On whether Top Glove can dethrone Maybank from top spot, Bank Muamalat’s economist Izuan Ahmad believes that it is possible for the glove maker to do so. The economist also noted that the glove maker’s two-for-one bonus share issue proposal could augur well to enhance its trading liquidity and marketability as the exercise would enlarge its share base up to 8.22 billion from 2.7 billion.
According to analysts’ projections, Top Glove’s target price ranges from RM25.40 to RM46.40 a share, as analysts are upbeat over the glove maker’s prospects due to the resilient demand spurred by the Covid-19 pandemic.