KUALA LUMPUR (Nov 16): Selling of Top Glove Corp Bhd shares accelerated in the afternoon session today following news that the government will put some of its worker dormitories in Klang under the enhanced movement control order (EMCO), effective tomorrow until Nov 30.

The implementation of EMCO raises concerns on the world’s biggest glove maker’s production in its plants considering 13,190 workers against its total workforce of 21,000 are not allowed to work in the factories. 

Top Glove’s share price slid 7.46% or 58 sen to end the trading day at an intra-day low of RM7.20, valuing it at some RM59.01 billion. It was the fourth biggest value loser on Bursa Malaysia today.

The news on EMCO added to the selling pressure that was sparked by the news flow on the availability of the Covid-19 vaccine.

There were 79.76 million shares changing hands, making it the 28th most actively traded counter on the local bourse today.

The glove counter has been drifting lower after it reached the record high of RM9.60 on Oct 19. It has dropped 25% since then. Nonetheless, the stock is still the best performing stock among the FBM KLCI component stocks. 

Senior Minister (Security) Datuk Seri Ismail Sabri Yaakob was quoted by the media announcing that there would be an EMCO implemented at a Top Glove workers’ dormitory in Klang from Nov 17 to Nov 30, 2020. The minister said this was due to 215 Covid-19 cases being detected at the dormitory.

The affected area includes both male and female dormitories as well as the surrounding Jalan Abadi 10A/KU8, and Jalan Abadi 1A.

Approximately 13,190 Top Glove’s staff and 1,200 residents have been impacted by the EMCO.

Ismail Sabri was reported to have said that Top Glove can continue to operate during the EMCO period. However, it must carry out Covid-19 screening for its remaining workers and other dormitories that have not been placed under an EMCO.

Read also:
Top Glove dormitories in Klang under EMCO from Nov 17 to 30, says Ismail Sabri