PETALING JAYA: Top Glove Corp shares, the world’s largest rubber glove manufacturer, sank in early trading today after the government said 28 of its factories in Klang, Selangor, would suspend operations among its employees in stages following an increase in Covid-19 incidents.
Bloomberg recorded that this morning, the Top Glove shares fell by as much as 7.5%. It is marking its first decline in three days.
Senior Security Minister Ismail Sabri Yaakob said yesterday that the closure of the plants was intended to allow workers to undergo screenings and compulsory quarantine.
I am made to recognise that there are 1,067 favourable cases for today. On the Ministry of Health’s advices, we decided to close these factories in stages at today’s meeting of the National Security Council,’ he said.
Yesterday, nationwide, a record high of 1,884 new infections were registered. It includes 1,203 cases in Selangor alone, followed by 289 in Sabah and 196 in Kuala Lumpur.
The government placed a lockdown on the dormitories of Top Glove in Selangor last week. A step the company said would affect 5,700 employees, or 27% of its total staff.
According to Bloomberg, the latest closures are coming at a time when the company’s shares have been under pressure in recent weeks. The major reason is due to reports of progress on the Covid-19 vaccine.
It said that this month the Top Glove shares has dropped 19%, paring its impressive rally to around 342% this year.
It also said that Top Glove has more than 21,000 employees. There are 750 production lines churn out 90 billion gloves annually.