KUALA LUMPUR (June 2): Both Maybank Investment Bank Bhd and RHB Investment Bank Bhd have tightened their share margin valuation on glove-related counters, starting today, following the relentless craze for glove makers' stocks.
According to circulars issued by both investment banks, margin financing curbs will be imposed on the trading of shares in Hartalega Holdings Bhd, Top Glove Corp Bhd, Kossan Rubber Industries Bhd, Supermax Corp Bhd, Rubberex Corp Bhd and Comfort Gloves Bhd — at lower valuations compared to their current share prices.
For instance, Maybank has capped the margin for Hartalega at RM8.97, Top Glove at RM9.41, Kossan at RM7.87, Supermax at RM3.38 and Comfort Gloves at RM2.29.
RHB, meanwhile, has issued a circular to have the financing limit be capped at a 35% discount to the latest market closing price of Hartalega (or at a 35% discount on RM8.15, whichever is lower), Top Glove (or on RM8.64), Kossan (or on RM5.65), Supermax (or on RM5), Rubberex (or on RM2.31), and Comfort Gloves (or on RM2.35).
One brokerage personnel who do not wish to be named said these brokerage houses' latest policies are designed to cut down their potential exposure to these glove-counters, should there be a sudden turn in tide in their recent share price surge.