Top Glove moves up again to 2nd-most valuable on Bursa
Top Glove

by SHAZNI ONG/ pic by TMR FILE

THE healthcare thematic continues to be the main play with pharmaceutical and glove counters actively traded on Bursa Malaysia as the grim Covid-19 infections rate continues to hit new highs.

Top Glove Corp Bhd rose RM1.42 to a fresh historic high of RM26.12 which took its market capitalisations to RM70.45 billion, making it the second-most valuable company on the exchange after overtaking Public Bank Bhd which is valued at RM69.57 billion at close yesterday.

Profit-taking on pharmaceutical counters dented the rally there. Pharmaniaga Bhd and Apex Healthcare Bhd were among the top losers for the day, having witnessed their share price lose 52 sen and 57 sen respectively, yesterday.

Investors bought into glovemakers like Hartalega Holdings Bhd, Comfort Gloves Bhd and Careplus Group Bhd on a day when the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) breached the 1,600 points mark to close the day up 19.44 points or 1.22% to 1,606.42 points with 12.12 billion securities changing hands valuing at RM6.65 billion, second-highest trading volume ever since the 12.4 billion units traded on Monday this week.

The volume was mostly driven by penny stocks like Bioalpha Holdings Bhd with a volume of 2.2 billion shares traded after the company secured a RM2.1 billion health contract on Wednesday.

Rising tensions between the US and China failed to dampen market sentiment.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said technology-related counters stand to gain from the high demand for information technology-related services due to the “work from home” norm.

Hong Leong Investment Bank Bhd was mindful of downside risks to the domestic economy and corporate earnings amid soaring fears of new wave infections, intensifying US-China geopolitical tensions coupled with lingering political uncertainty.

“With Top Glove and Hartalega collectively contributing about 12% of FBM KLCI’s market capitalisation as of Wednesday, volatility in their share prices will continue to influence FBM KLCI short-term performance.

“We expect an extended healthy market consolidation to neutralise overbought technical momentum for a more sustained uptrend going forward. Key resistances are 1,600, 1,617, and 1,633 levels, while support falls at 1,563, 1,546 and 1,525 zones,” the firm said.