PNE PCB shares skid after surging on gloves venture

TheStar Thu, Jan 14, 2021 01:36pm - 1 month ago

KUALA LUMPUR: Shares of PNE PCB Bhd fell in very active trade at midday on Thursday as investors locked in gains following the recent rally on news about its glove manufacturing venture.

At midday, it was down 10.5 sen to 52 sen, which was the lowest since Dec 30. It saw 190.74 million shares done.

Its shares surged to 85 sen on Jan 8, a day after it announced plans to diversify into manufacturing and trading of rubber gloves.

On Jan 7, it announced its unit PNE Glove Sdn Bhd intends to set up five gloves production lines with each yielding approximately 300 million pieces per year.

On an annual basis, the group expects to contribute around1.5 billion pieces of gloves to narrow the global gloves demand-supply gap.

PNE Glove then inked a lease agreement with GPA Holdings Bhd to lease certain industrial buildings in Klang for the production lines.

“The capital expenditure to commission and install all five glove-dipping lines and related facilities is expected to total approximately RM60mil, which includes the set-up of the automated glove-dipping lines, purchase of equipment and components such as formers and moulds, and other necessary systems and certifications, ” it said.

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