Glove makers among those impacted by firmer ringgit
KUALA LUMPUR: Shares of export-oriented companies fell as the ringgit continues its appreciation to a one month high of RM4.209 against the US dollar early Wednesday.
As at midday, among the biggest losers were companies which directly benefit from a weakening ringgit due to their substantial overseas sales exposure.
Leading the pack were glove makers such as Kossan Rubber Industries Bhd
and Hartalega Holdings Bhd which fell by 5% each to RM8 and RM5.48 respectively. Top Glove Corp Bhd fell 2.59% to RM9.40.
Packaging companies which derive a large proportion of their revenue from overseas also fell significantly.
Daibochi fell 2.6% to RM5.60 while Tomypak fell 6.5% to RM2.73.
The ringgit snapped its decline following a slew of positive developments, including a rally in crude oil prices as well as the sale of 1Malaysia Development Bhd’s energy assets to a Chinese consortium for RM9.8bil.
Since Nov 18, the currency has appreciated by 4% against the greenback from a recent low of RM4.38.
Since Nov 17, Brent crude has appreciated by nearly 6% and was last traded at US$46 per barrel.
Oil markets were further roiled on Tuesday as a Russian jet was shot down over Turkish airspace, raising the possibility of more volatility in the Middle East.
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