Source from The Edge: https://www.theedgemarkets.com/article/brokerage-houses-tighten-margin-financing-glove-makers-stocks-amid-trading-madness
On 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.
*Haircut on glove sector by RHB Investment Bank Circular
Glove sector has been outperform other
sector during this COVID Pandemic due to demand surged. The lockdown of
the economy causing the oil price to dip to the lowest of 14 USD per
barrel, thus lower the raw material price for glove's makers. The
strengthening of USD against MYR also giving a plus to the glove
sectors. Glove's maker like Supermax has rose more than 600% YTD from
RM 1.3X to highest of RM 8.2X.
Why brokerage house and investment bank
will tighten their margin valuation at this time? Does it indirectly
telling investor that they feel that Glove Sectors are EXTREMELY
OVERPRICED?
DISCLAIMER: THE
ABOVE INFORMATION SOLELY BASED ON PERSONAL OPINION FOR RESEARCH,
DISCUSSION AND EDUCATIONAL PURPOSE ONLY. THE ABOVE INFORMATION IS NEVER
INTENDED TO BE A BUY/SELL CALL OPINION.
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https://klse.i3investor.com/blogs/babystockchannel/2020-06-02-story-h1507978747-Brokerage_House_Tighten_Margin_on_Topglove_Harta_Supermax_etc_means_Glo.jsp
