Rubber-Glove Maker Becomes Malaysia’s Second-Biggest Company
Rubber-Glove Maker Becomes Malaysia’s Second-Biggest Company
(Bloomberg) -- Top Glove Corp. 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 in Top Glove, which ranked near the bottom of the FTSE Bursa Malaysia KLCI Index at the start of the year, closed Thursday with a market value of 70.4 billion ringgit ($16.5 billion), exceeding Public Bank’s 69.5 billion ringgit. The astonishing surge in Top Glove’s shares has closed the 63 billion ringgit gap at the beginning of 2020 between its market capitalization and that of Public Bank, the nation’s third largest lender by assets. Shares of both companies edged lower on Friday.
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 88.2 billion ringgit.
“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. 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 453% this year, while Public Bank and Malayan Banking have each declined about 9%.
©2020 Bloomberg L.P.