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...
Modest Earnings Uptick Expected
Top Glove Corp Bhd (KL:TOPGLOV), the world’s largest rubber glove maker, is likely to post only slight quarter-on-quarter earnings improvement in its fiscal 4QFY2025, according to Phillip Capital.
Projected net profit: RM22–23 million, versus RM21.5 million in 3QFY2025.
This would mark a turnaround from the net loss of RM50.5 million in 4QFY2024.
The improvement is underpinned by higher utilisation rates, with the company running at 74% capacity on stronger US orders.
Headwinds: Prices and Currency Pressure
Despite better volume, Phillip Capital warned that:
Softer average selling prices (ASPs) and
- A stronger ringgit against the US dollarwill weigh on margins.
The research house has cut its target price by 12 sen to 59 sen, citing persistent structural challenges that cap earnings recovery.
Competitive Pressures Intensify
Global oversupply continues to plague the glove sector, with:
Chinese rivals ramping up production in Southeast Asia to avoid US tariffs.
Aggressive discounting in non-US markets squeezing Top Glove’s pricing power.
Still, the company has signaled it will avoid further price cuts, banking on resilient demand in the US to support earnings.
Longer-Term Outlook
Phillip Capital expects meaningful recovery only in FY2026–FY2027, as utilisation rates gradually rise and the industry digests excess supply.
Investor takeaway: While Top Glove’s near-term earnings may stabilise, its valuation remains constrained by oversupply, currency pressure, and intense Chinese competition. Any sustained recovery looks to be a medium-term story rather than an immediate catalyst.
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