KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
What Happened:
Top Glove’s stock hovers near its 2023 lows after 3Q earnings fell short, triggering analyst downgrades and worries about tougher days ahead amid rising costs and intensifying competition, especially from Chinese rivals.
Market Context:
Shares have lost nearly half their value year-to-date.
Competition from Chinese players shifting production overseas to bypass tariffs adds pressure.
Analyst sentiment remains cautious: only 4 buys out of 21; average target price at 83 sen.
Where Smart Money Is Watching:
1️⃣ Glove Sector Consolidation: Watch for potential mergers, closures, or capacity cuts.
2️⃣ Export Markets: Especially non-US markets where Chinese players are dumping supply.
3️⃣ Raw Material Trends: Soft raw material prices could cap any price hikes.
Money Master Take — Key Insights:
Earnings visibility remains weak for Top Glove amid industry headwinds. Consider sector-wide exposure carefully, focusing on producers with stronger cost structures or diversified markets.
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