Weekly | Why Top Glove Lead the Market this Week?

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,624.76 points, up 1.74% points last week.

During the last 5 trading days, $Top Glove(BVA.SI)$, $Sri Trang Agro(NC2.SI)$, $IHH(Q0F.SI)$, $DFIRG USD(D01.SI)$ and $Keppel(BN4.SI)$ are the top 5 weekly gainers, up 19.64%, 7.93%, 6.83%, 6.08% and 5.62% respectively.

$HPH Trust USD(NS8U.SI)$, $Lendlease Reit(JYEU.SI)$, $NetLink NBN Tr(CJLU.SI)$, $Mapletree Ind Tr(ME8U.SI)$ and $Frasers Cpt Tr(J69U.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $Top Glove(BVA.SI)$

• Shares of Malaysian glove manufacturers, including Top Glove Corp., surged following expectations that the US will finalize tariffs on Chinese goods this month.

• The anticipated increase in US tariffs on gloves made in China presents an opportunity for Malaysian companies to ramp up production, said Lim Cheong Guan, managing director of Top Glove Corp Bhd. According to The Edge, Malaysian manufacturers are "able to increase our production" to meet US demand if the tariffs create a supply vacuum from China, Lim stated at a media event discussing the company's improvements in water management systems.

• Additionally, Top Glove executives made notable share purchases during a closed period, as revealed in a filing on the Singapore Exchange on September 13. On September 11, executive chairman Lim Wee Chai acquired 1 million shares indirectly for 897,500 ringgit, while executive director Lim Hooi Sin purchased the same amount of shares directly for 897,500 ringgit.

2. $Sri Trang Agro(NC2.SI)$

• Rubber stocks in Thailand experienced a slight increase last week as domestic prices continue to rise, driven by adverse weather conditions, supply chain disruptions, and growing global demand for natural rubber.

• Moreover, in light of the recently announced 50% US tariff on Chinese surgical gloves for 2024, followed by a 100% tariff in 2025, Sri Trang Gloves (Thailand) PCL is expecting a surge in export orders from China. This is expected to support this year's annual sales target of 40 billion pairs, with Sri Trang Agro Industry PCL providing the necessary raw materials.

3. $IHH(Q0F.SI)$

• The Employees Provident Fund Board (EPF) of Malaysia has increased its stake in IHH Healthcare Bhd by acquiring an additional 228,700 ordinary shares, bringing its direct ownership in the company to 10.947%. The EPF now holds a total of 964,092,312 shares in IHH Healthcare. This transaction, reported on September 17, 2024, further solidifies the EPF’s position as a significant shareholder in the healthcare provider.

• IHH plans to open 15 new clinics and two Ambulatory Care Centres (ACCs) in Singapore, as well as six new clinics or ACCs in Hong Kong by 2028, according to a report from The Straits Times in the previous week. The company also aims to increase hospital capacity by nearly 4,000 beds and is exploring new markets such as Indonesia and Vietnam.

4. $DFIRG USD(D01.SI)$

• Last week, the US Federal Reserve made a significant move by cutting interest rates for the first time in four years, reducing them by 50 basis points, which sent a dovish signal to central banks in emerging markets. With more room to ease monetary policy, the outlook for local markets in Southeast Asia has generally improved, according to analysts.

• According to reports, the Monetary Authority of Singapore (MAS) has proposed plans to enhance Singapore's equity markets, as stated by Transport Minister and Second Finance Minister Chee Hong Tat during the Securities Investors Association Singapore (SIAS) 25th Anniversary Corporate Governance Conference 2024.

• DFI Retail Group Holdings showed strong performance last week, with shares rising nearly 4% on Tuesday, making it one of the most active stocks. A recent analysis from SimplyWall.st highlights that DFI Retail Group Holdings boasts a respectable return on equity (ROE), which compares quite favorably to the industry average of 4.0%.

5. $Keppel(BN4.SI)$

• According to the STAR, Tenaga Nasional Bhd has entered into a cross-border agreement with Singapore's Keppel Electric Pte Ltd to supply up to 100MW of electricity. In a statement, the utility group noted that this agreement is part of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP), which aims to enhance energy security and sustainability across ASEAN.

• Additionally, Keppel Ltd. and Samsung Vina Electronics Co., Ltd. signed a memorandum of understanding (MoU) on September 16 to implement smart technology solutions in Vietnam’s real estate sector.