Top Glove shares sink after 28 plants told to close

 

Twenty-eight Top Glove factories in Klang will suspend production following a spike in Covid-19 cases among the employees. (Bernama pic)

PETALING JAYA: Shares in Top Glove Corp, the world’s biggest maker of rubber gloves, sank in early trading today after the government said 28 of its factories in Klang, Selangor, will suspend operations in stages following a spike in Covid-19 cases among its workers.

Bloomberg reported that Top Glove’s stock dropped by as much as 7.5% this morning, marking its first decline in three days.

Yesterday, Senior Minister for Security Ismail Sabri Yaakob said the closure of the plants was to allow the workers to undergo screenings and mandatory quarantine.

“I am made to understand that for today, there are 1,067 positive cases. On the advice of the health ministry, at today’s meeting (of the National Security Council), we have agreed to close these factories in stages,” he said.

A record high of 1,884 new infections were reported nationwide yesterday, including 1,203 cases in Selangor alone, followed by 289 in Sabah and 196 in Kuala Lumpur.

Last week, the government imposed a lockdown on Top Glove’s dormitories in Selangor, a move the company said will affect 5,700 workers, or 27% of its total employees.

According to Bloomberg, the fresh closures come at a time when the company’s shares have been under pressure by news of progress on a Covid-19 vaccine in recent weeks.

It said the stock has tumbled 19% this month, paring its spectacular rally this year to about 342%.

It also said Top Glove has more than 21,000 employees that churn out 90 billion gloves annually at 750 production lines. - FMT