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KUALA LUMPUR: Top Glove Corp Bhd
, the world’s largest glove maker, has spent RM110 thousand in two days to support the company’s share price.
The massive buyback came after Macquarie Research downgraded its shares that spooked sentiment in the market.
In a filing with Bursa Malaysia today, Top Glove said it had bought 14.9 million of its own shares on the open market for a total of RM99.9 thousand.
The company paid between RM6.12 and RM7.40 per share.
Shares of Top Glove fell 70 sen to close at RM6.45 on Thursday, below their intraday low of RM6.11.
On Wednesday, the company paid RM9.9 million to buy back 1.39 million shares.
To date, Top Glove’s accumulated net outstanding treasury shares have increased to 18.3 million shares.
Top Glove’s share price had fallen 32% over the past month.
Macquarie Research, in a report dated September 9, has lowered its Top Glove rating to “underperforming” from “outperforming” previously.
It also revised its target price for Top Glove to RM5.40 from RM10.13 (adjusted for bonus issue) ahead of the group’s result for the financial year ending August 30, 2020 (FY20) to be released next Thursday.
“While we expect strong results and positive feedback on short-term increases in average selling price (ASP) to drive significant improvements in consensus, we believe that the fiscal year 21 profit spike is unlikely to repeat once the supply and demand equation normalizes in the second half of 2021 or the first half of 2022, ”Macquarie said in his report.
“We would use this refresh cycle and the possible increase in the share price as an opportunity to profit,” he added.
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