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KUALA LUMPUR (Oct 2): The third quarter (Q3) of this year has seen many record numbers.
Rubber glove accountants, for example, reported their highest earnings, while trading volume in Bursa Malaysia rose to a record high. Sadly, the number of COVID-19 infections worldwide also reached a new peak.
Here are eight charts that will show you the highlights of what has been a rugged third quarter of 2020.
COVID-19 shows no signs of slowing down
The number of COVID-19 cases worldwide continued to rise in Q3, showing no signs of slowing down. As of September 30, the number of confirmed cases worldwide was 33.98 million, up 219% from the start of the quarter, while the number of deaths has almost doubled to one million. The United States has the highest number of cases with 7.45 million, followed by India (6.32 million cases) and Brazil (4.81 million cases). These three countries also suffered the most deaths from COVID-19, with their collective death figures accounting for 45% of the global total.
In Malaysia, the number of new confirmed cases dropped to single digits in July and August, but rose to more than 100 in September. Consequently, the number of active cases, which increased at a faster rate towards the end of 3Q, surpassed the 1,000 mark on September 28. The total number of confirmed cases increased 30% during the quarter to 11,224 as of September 30.
Rubber Glove Manufacturers Record Growing Profits
The pandemic has resulted in increased use of rubber gloves, which in turn translated into higher profits for rubber glove manufacturers during the quarter. Top Glove Corp Bhd led the pack with a record profit of RM1.3 billion for its fourth quarter ending August 31, 2020 (4QFY20), almost 18 times the RM74.17 million it posted a year earlier.
However, Top Glove’s record earnings failed to raise its share price, as the market has likely already listed them. With that said, the accountant still gained 479% during the quarter to close at RM8.30 on September 30.
In addition, Hartalega Holdings Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd reported record earnings in the same quarter, thanks to strong sales and higher average sales prices.
Bursa Malaysia records record trade volume
Trading volume in Bursa Malaysia rose to a new high of 27.8 billion shares on August 11, while trade value reached a new peak of RM10.5 billion on August 4 amid the continuing craze for shares. Rubber glove stocks and the emergence of a penny stock rush that had at least doubled the share price of many loss-making companies in a single day.
However, trading volume subsequently declined to 5.6 million shares at the end of the quarter, 80% less than the peak.
Similarly, the trade value was reduced by 75% to RM2.6 billion as of September 30.
Gets Global Bhd earned the most in Q3, with the bus operator gaining 671% to close at 81 sen on September 30.
The optimism at the counter was fueled by his announcement of a planned diversification in the rubber glove business. The company plans to build a glove manufacturing plant with 12 glove dipping lines, which is expected to produce 4.14 billion pieces of gloves per year.
The second winner was IT solutions provider MSCM Holdings Bhd, which also announced its plan to venture into nitrile glove production in an attempt to reverse its financial performance. The accountant gained 653% in Q3 to close at RM1.13.
Inix Technologies Bhd, whose share price soared 418% during the quarter, also revealed its plans to establish a rubber gloves business.
Meanwhile, companies in the distribution of COVID-19 vaccines also helped drive company stock prices.
For example, Solution Group Bhd soared 484% in three months, while Bintai Kinden Corp Bhd was up 435%.
Bank Negara Malaysia takes a break from rate cuts
Bank Negara Malaysia (BNM) halted its wave of rate cuts at its September Monetary Policy Committee (MPC) meeting, which came as a surprise to many.
The Central Bank had been cutting rates in the last four consecutive meetings of the MPC since the beginning of the year, lowering the overnight policy rate by 125 basis points (bp) to a record low of 1.75%.
Before the MPC meeting in September, economists were divided on their forecasts; some expected the central bank to further reduce the OPR before the end of the year.
However, many of them changed their forecasts after the relative optimism expressed by Bank Negara about the recovery of the domestic and global economies. The market consensus opinion is that the rate can remain at 1.75%, at least until the end of the year, except for unforeseen circumstances.
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