Hartalega Holdings Bhd and Top Glove Corp Bhd are the two counters which have led this big rally in the rubber glove share prices, and they are now among the top-ten, largest capitalised stocks on Bursa Malaysia. They are also constituents of the closely tracked FBM KLCI index.
PETALING JAYA: Brokerages have become uneasy over the stratospheric rise in the share prices of rubber glove companies and have put a cap on how much traders can borrow if they use these counters as collateral.
“The brokerage houses have effectively put a ‘market cap’ on the glove counters for the time being. I think they are doing the right thing to protect themselves in case the prices abruptly come down since they are very overvalued now, ” said a Kuala Lumpur-based stock broker.
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