Top 50 gainers in absolute terms

WITHIN the May 8-Nov 30 period, the benchmark FBM KLCI has gone down by about 9%. On the other hand, the FBM Small Cap Index took a worse beating, falling by over 16%.

While Bursa Malaysia witnessed a disappointing broad-based loss in market capitalisation, this did not stop many stocks from emerging stronger in the seven-month period.

Cumulatively, Bursa Malaysia’s top 50 gainers between May 8 and Nov 30 recorded a stellar increase of RM53.38bil in market capitalisation.

On May 8 – a day before the General Election 14 (GE14) – the cumulative market capitalisation of the 50 stocks was valued at RM517.17bil.

Less than seven months later on Nov 30, the 50 stocks’ total market value increased by nearly 10.3% to RM570.55bil. This represents 33.3% of Bursa Malaysia’s total market capitalisation.

Generally, companies in the banking, rubber glove and consumer goods sectors have dominated the gainers list.

National oil producer Petronas’ subsidiary, Petronas Chemicals Group Bhd (PetChem), is the biggest gainer in market value post-GE14.

Supported by its strong earnings growth of 37%-42% in the latest two quarters of financial year 2018 due to stronger crude oil price and higher average selling prices, PetChem’s market capitalisation has surged by RM6.24bil or 9.3% to RM73.6 bil.

Second to PetChem, cigarette manufacturer British American Tobacco (M) Bhd (BAT) saw an increase of RM4.28bil or 66.1% in market value to RM10.76bil as at Nov 30.

Unlike many other stocks, the GE14 outcome came as a blessing for BAT, pushing the counter up by nearly 43% in the same week Bursa Malasia opened for trading after the national polls.

Public Bank Bhd emerged as the third biggest absolute market value gainer in the May 8-Nov 30 period, up by RM4.04bil or 4.4% to RM96.72bil. The banking stock is the second largest counter on Bursa Malaysia, in terms of market capitalisation.

Aside from BAT, other consumer goods stocks among the top 10 market value gainers are food and beverage manufacturer Nestle (M) Bhd and QL Resources Bhd, the FamilyMart convenience store master franchisee in Malaysia.

Glovemakers Top Glove Corp Bhd and Hartalega Holdings Bhd clinched two spots among the top 10 gainers, with Kossan Rubber Industries Bhd following close at the 13th rank.

Top Glove, the world’s largest manufacturer of gloves, saw its market capitalisation increasing by RM2.71bil or 21.6% to RM15.29bil as of Nov 30.

The group’s increase in market value has been adjusted for the one-for-one bonus share issue approved in Oct 2018, which entailed the issuance of up to 1.28 billion new ordinary shares.

Over the course of 2018, Top Glove has been hit with several unfavourable developments. In December, overseas news reports alleged that some of Top Glove’s migrant workers were subjected to forced labour and overtime and debt bondage.

Few months earlier, Top Glove announced that it was a victim of fradulent misrepresentation and also said that it may have overpaid by RM640.47mil for Aspion Sdn Bhd, a surgical glove specialist which it acquired in April 2018.

Meanwhile, Hartalega recorded a RM1.8bil or 9.2% increase in market value to RM21.3bil on the back of strong earnings delivery.

Petronas’ another subsidiary, Petronas Gas Bhd, also made it to the top 10 market value gainers’ list.

The market capitalisation of the retailer and marketer of downstream oil and gas products rose by RM2.33bil or 6.6% in the May 8-Nov 30 period to RM37.48bil.

The top 50 gainers’ list is not only about large-cap counters.

It is interesting to note that several small- and mid-cap stock pre-GE14 have recorded massive increase in market value in the past seven months.

From only a market capitalisation of RM186mil on May 8, Dufu Technology Corp Bhd witnessed a market value increase of almost 247% or RM458.85mil to RM644.85mil.

The manufacturer of precision machining components completed its bonus issue of up to 87,735,185 new ordinary shares on the basis of one bonus share for every two existing shares on Nov 30.

Besides Dufu, Supercomnet Technologies Bhd (Scomnet) is another small-cap stock that saw its market value rising by RM228.27mil or 104.4% to RM446.89mil as of Nov 30.

Scomnet, which makes high-tech wires and cables, has recorded strong earnings growth in its latest two quarters.

In the second quarter ended June 30, the company saw its bottom line surging by over nine times, while in the third quarter ended Sept 30, earnings jumped by over five times to RM4.94mil.