Top Glove Drops After Malaysia Shuts Some Plants on Virus Cases

(Bloomberg) — Shares of the world’s biggest maker of rubber gloves sank after Malaysia said it will temporarily close 28 of its factories located in Selangor state after a spike in infections there pushed up the nation’s daily cases to a record.

Top Glove Corp.’s stock dropped as much as 7.5% on Tuesday, its first decline in three days. Its factories will be closed in stages to allow workers to undergo screenings and quarantine, Defense Minister Ismail Sabri Yaakob told reporters on Monday, without saying when the closures would begin.

The order came shortly before the country posted a record 1,884 new infections on Monday, with as many as 1,067 cases coming from the Teratai cluster in Selangor that’s linked to Top Glove’s worker dormitories.

graphical user interface, chart: Top Glove shares drop after Malaysia to shut some of its plants

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Top Glove shares drop after Malaysia to shut some of its plants

Last week, the government imposed a lockdown on the dormitories in the state, a move the company said will affect 5,700 workers, or 27% of total employees. Top Glove in a filing Monday said it had temporarily halted production at 16 facilities in Meru, Klang since Nov. 18, and the remaining 12 have been running below capacity.

The fresh closures come at a time when the company’s shares have been under pressure by news of progress on a Covid-19 vaccine in recent weeks. The stock has tumbled 19% this month, paring its spectacular rally this year to about 342%.

Top Glove has more than 21,000 employees that churn out 90 billion gloves annually at 750 production lines.

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