TOP GLOVE CORPORATION BHD (TPGC:KL) shares up on company’s capacity expansion news

TOP GLOVE CORPORATION BHD (TPGC:KL) shares up on company’s capacity expansion news

TOP GLOVE CORPORATION BHD (TPGC:KL) shares up on company’s capacity expansion news

Shares of Top Glove Corporation were higher on news the biggest nitrile glove producer is expanding capacity to produce between 25 billion and 30 billion gloves annually.

In a note today, Shayne Heffernan, CEO and Founder of Heffx said Top Glove was its favourite stock.

“We continue to like Top Glove for its expansionary plans, focus and continual efforts at improving quality and operational efficiency, alongside its position as the largest rubber glove manufacturer,” he added.

The research house said Top Glove would be able to revive its margins in the fourth quarter financial year 2019 to the 16 per cent level, as the company had hiked the selling price of its natural rubber gloves, to match raw material price movement.

However, it noted the company would continue to face pressure on margins in calendar year 2019 due to the 13.1 per cent influx of nitrile glove supply by the top rubber producers, as well as from Thailand-based Sri Trang, with plans to increase latex glove supply to 30 billion pieces (from 17 billion currently by 2022).

AmInvestment maintained a “buy” call on Top Glove with a target price of RM5.56.

At 11.45am, shares of Top Glove rose six sen to RM4.93 with 1.17 million shares transacted.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 5.09.

The projected lower bound is: 4.72.

The projected closing price is: 4.90.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 24 white candles and 22 black candles for a net of 2 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 47.3684. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 45.60. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 64 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -182.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.

Rex Takasugi – TD Profile

TOP GLOVE CORP closed up 0.030 at 4.900. Volume was 60% below average (consolidating) and Bollinger Bands were 51% narrower than normal.

Open          High            Low          Close           Volume___
4.870 4.940 4.850 4.900 2,463,200

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period     50-period     200-period
Close: 5.01 4.83 5.15
Volatility: 18 24 33
Volume: 4,813,411 4,798,082 7,043,942

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TOP GLOVE CORP is currently 4.9% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TPGC.KL at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TPGC.KL and have had this outlook for the last 1 periods.

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HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

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