Tuesday, September 13, 2011

Top Glove slides further on bleak outlook

KUALA LUMPUR: TOP GLOVE CORPORATION BHD [] shares extended their losses on Tuesday, Sept 13 as analysts maintained a negative outlook for the sector as there were no strong catalysts to boost glove demand as well as profit margin, in the absence of a pandemic.

At 9.15am, Top Glove fell 18 sen to RM4.10 with 155,300 shares traded.

MIDF Research in a note Sept 12 maintained its Sell call for Top Glove with unchanged target price of RM4.18 due to escalating latex price, huge exposure to latex glove segment (the demand of which is still weak) and appreciation of ringgit against the US dollar.

'Meanwhile, we have Neutral call for Kossan with target price of RM3.04. Our top pick is still Hartalega (BUY, TP: RM6.36), which we continue to like given its high composition of nitrile output, better earnings growth and intact pricing power,' it said.

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