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Top Glove Shares Climb Up as U.S. Exports Allowed to Resume By Investing.com

© Reuters.

By Gina Lee

Investing.com – Malaysia’s Top Glove Corporation Bhd (KL:) saw its shares jump after the from Sep. 10 onwards.

Shares were up 2.65% to MYR3.49 ($0.84) by 12:54 AM ET (4:54 AM GMT) after rising as much as 10%, the biggest surge in five months, earlier in the session. They have dropped 48% since the ban in mid-July 2020 until Thursday.

The company had been under a U.S. import ban since July 2020 over allegations that it abused migrant workers. The timing of the ban came as the company made record profits thanks to COVID-19 demand.

However, a company statement said Top Glove had been cleared to resume U.S. sales and remains committed to workers’ health, safety and well-being. U.S. Customs and Border Protection (CBP) also said it will revoke the ban in a notice posted on the Federal Register website.

“CBP has now determined, based upon additional information, that such merchandise is no longer being, or is likely to be, imported into the United States in violation of section 307 of the Tariff Act of 1930, as amended,” the notice said.

The impact for Top Glove is only positive, according to some investors.

“We believe that the removal of the ban would boost Top Glove revenue, which have suffered since shipments by Top Glove’s Malaysia to the U.S. halted temporarily,” TA Securities analyst Tan Kong Jin said in a note.

Top Glove’s North America sales dropped to 8% suring the fiscal third quarter ended May from 23% in the fiscal second quarter ended February, according to Tan.

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