Tan Sri Dr Lim Wee Chai (The Edge file photo)

KUALA LUMPUR (May 12): Top Glove Corp Bhd executive chairman Tan Sri Dr Lim Wee Chai has raised his stake in the rubber glove maker after buying more shares in the company, which has seen its share price fall to its lowest in over two years on broader market weakness and at a time when Covid-19-driven demand for glove is seen normalising as global vaccination progress leads to anticipation that the Covid-19 outbreak can be curbed.

According to Top Glove's shareholding change updates filed with Bursa Malaysia on Wednesday (May 11, 2022), Lim on Wednesday raised its direct stake in Top Glove to 27.392% after acquiring 1.5 million shares at RM1.53 each.

The filing showed that Lim also owns an indirect stake of 8.495% in Top Glove, which is the world's largest rubber glove manufacturer by production capacity.

On Thursday (May 12, 2022), Top Glove's share price fell four sen or 2.61% to RM1.49 -- the lowest level since Dec 16, 2019 when the stock closed at RM1.48.

Based on Top Glove's 8.01 billion outstanding shares, its latest closing share price of RM1.49 values the company at about RM11.93 billion. Top Glove's share price has fallen from its record high closing price of RM9.60 in October 2020, valuing the group at RM78.17 billion then. The glove maker's market capitalisation has evaporated 85% from the peak.

Top Glove's share price has been adjusted for its two-for-one bonus share issue under which about 5.4 billion new shares were listed and quoted on Bursa Malaysia and the Singapore Exchange on Sept 7, 2020, according to the company's Bursa filing on that day.

Looking back, Top Glove was closely watched as beneficiary of the Covid-19 outbreak which started in early 2020 as demand for rubber gloves, seen as a crucial personal protective equipment, surged to curb the global spread of Covid-19.

However, Covid-19-driven demand for gloves is now seen normalising as global vaccination progress leads to anticipation that the Covid-19 outbreak can be curbed.

Such sentiment is reflected in Top Glove's share price.

On Thursday (May 12, 2022), Top Glove's share price also took cue from broader market weakness as US inflation data dented world markets.

The FBM KLCI tumbled more than 1% when markets closed on Thursday (May 12, 2022) while Bursa's Technology index was the worst hit among the bourse's 30 gauges as forecast-beating US inflation dented world markets, seen taking cue from anticipation of US interest rate hikes to fight rising consumer prices.

At 5pm, the KLCI closed down 17.13 points or 1.1% to 1,538.8 while Bursa's Technology index fell 4.44% to become the worst-hit gauge in percentage terms. All 30 Bursa indices ended lower.

KLCI component Top Glove is also a constituent of Bursa's Heath Care index, which finished down 0.6%.