Top Glove shares fall sharply after factories closed due to COVID-19
Bernama
November 24, 2020 13:05 MYT
November 24, 2020 13:05 MYT
Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob, on Monday, said a total of 28 factories will be closed in stages after 1,884 Top Glove workers tested positive for the virus. - Astro AWANI / Shahir Omar
KUALA LUMPUR: Top Glove Corp Bhd’s shares dropped sharply today following news that 28 of its factories will be closed in stages to screen its employees for COVID-19 after a big jump in infections were recorded among its workers.
Senior Minister of Security Datuk Seri Ismail Sabri Yaakob, on Monday, said a total of 28 factories will be closed in stages after 1,884 Top Glove workers tested positive for the virus.
This came after the move to place the company's dormitory and the surrounding area under enhanced movement control order (EMCO) to curb the spread.
An analyst said that the closure of world largest rubber glove-maker’s factories might lead to a temporary shortage as gloves due to rising number COVID-19 cases globally.
"While vaccine plans are in place, the current situation places demand high until year-end. The cut in production will put the company to be under pressure for at least two weeks," he said.
As at 10.30am, Top Glove’s share price dipped 48 sen to RM6.87 with 40.65 million shares traded.
The decline also dragged down the benchmark index, the FBM KLCI by 7.74 points from the overall 9.64 points decline.
-- BERNAMA