Monday, September 12, 2011

Top Glove dips at mid-morning on weaker outlook

KUALA LUMPUR: TOP GLOVE CORPORATION BHD [] shares fell at mid-morning on Monday, Sept 12 after OSK Research said the company's performance continued to be affected by external factors.

The research house downgraded the stock to Sell from Neutral and cut its target price to RM4 from RM5 previously.

At 10.45am, Top Glove fell eight sen to RM4.51 with 104,400 shares traded.

OSK Research in a note Sept 12 said the factors affecting Top Glove included latex prices that were still at a high RM8-RM9/kg, but that the company was able to pass on 70%-80% of the cost increase.

The research house also said supply had caught up with demand, which reduced Top Glove's bargaining power.

'This leads us to downgraded our FY11-12 forecast by 6%-20%,' it said.


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