PETALING JAYA: Brokerages have become uneasy over the stratospheric rise in the share prices of rubber glove companies and have put a cap on how much traders can borrow if they use these counters as collateral.
“The brokerage houses have effectively put a ‘market cap’ on the glove counters for the time being. I think they are doing the right thing to protect themselves in case the prices abruptly come down since they are very overvalued now, ” said a Kuala Lumpur-based stock broker.
StarBiz sighted circulars from at least two bank-based brokerage houses that had limited the valuation that traders or borrowers could base their share collateral values on.
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