New Malaysia curbs to affect quarter of Top Glove workers; shares slump

The 14-day curbs running through Nov. 30 will affect about 5,700 workers in Meru, Klang, Top Glove, the world's largest latex-glove maker, said in a statement on Tuesday. COVID-19 cases in Malaysia have risen sharply since October, with the daily count hitting its highest this month since the pandemic started.

Top Glove shares tumbled as much as 15% on Tuesday after Malaysia tightened curbs on movements in an area where the company's dormitories are located for coronavirus screenings, a move that will affect about a quarter of its workers. The 14-day curbs running through Nov. 30 will affect about 5,700 workers in Meru, Klang, Top Glove, the world's largest latex-glove maker, said in a statement on Tuesday.

COVID-19 cases in Malaysia have risen sharply since October, with the daily count hitting its highest this month since the pandemic started. The country had a total of 48,520 infections on Monday. Malaysia said late on Monday the curbs would be imposed on two foreign worker dorms and surrounding areas in Klang, a district in western Malaysia, affecting 13,190 workers and almost 1,200 residents.

The government did not respond immediately to a Reuters request on Tuesday for further details. Demand for medical gloves and protective gear has skyrocketed due to the pandemic, helping Top Glove post a record profit for its latest quarter and powering a four-fold surge in its stock.

But its fortunes have wobbled over recent months after it was hit by an American import ban on two of its subsidiaries, and more recently by positive news on development of vaccines to prevent the coronavirus. Shares in other glove makers including Hartalega Holdings and Supermax Corp fell as well on Tuesday, likely affected by news that U.S. vaccine maker Moderna Inc's experimental vaccine is 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial.

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