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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Top Glove's Remarkable Turnaround: From Losses to Profits

Top Glove, the world’s largest glove maker, has made a significant comeback, returning to profitability after seven quarters of losses. This positive shift is driven by a strategic land sale and gains from favorable currency exchange rates, signaling a promising future for the company.


Key Highlights

Profit Turnaround:
Top Glove reported a profit of RM50.67 million for the third quarter ending May 31, 2024, a stark contrast to the RM130.59 million loss in the same quarter last year.

Boost from Sales:
The company benefited from selling property and equipment, which generated RM54.34 million, along with RM22.33 million from favorable currency exchange rates.

Revenue Increase:
Revenue increased by 20% to RM636.88 million, up from RM530.62 million last year. This rise is attributed to higher demand for gloves and a slight increase in prices.

Positive Outlook:
Top Glove’s managing director, Lim Cheong Guan, expressed optimism about future opportunities, particularly in the US market, where new tariffs on Chinese gloves could drive more business to Top Glove.

Nine-Month Performance:
Despite a loss of RM58.24 million for the first nine months of 2024, this is a significant improvement from a RM463.49 million loss last year. Revenue slightly decreased to RM1.68 billion.

No Dividend:
Top Glove did not declare any dividend for this quarter.

What Should Investors Do?

Watch Market Changes:
New US tariffs on Chinese gloves could benefit Top Glove, potentially leading to increased business and higher profits.

Consider the Future:
Despite recent losses, this quarter's turnaround is a positive indicator that Top Glove’s strategies are working.

Assess Risks:
Keep in mind the company’s past fluctuations and the broader market conditions.

Stay Informed:
Monitor Top Glove’s announcements and financial results to make informed investment decisions.

Top Glove’s return to profitability is an encouraging sign for investors, showcasing the company’s resilience and growth potential in the global market.

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