Market Cap Gap Between Top Glove and Maybank Narrows to RM8

Headline Market cap gap between Top Glove and Maybank narrows to RM8 bil MediaTitle The Edge Date 28 Sep 2020 Language English Circulation 25,910 Readership 77,730 Section Corporate Page No 20,24 ArticleSize 606 cm² Journalist ARJUNA CHANDRAN PR Value RM 31,543 Market cap gap between Top Glove and Maybank narrows to RM8 bil BLOOMBERG BLOOMBERG BY ARJUNA CHANDRAN SHANKAR Market caps of top 10 KLCI component stocks Selldown in banking stocks (as at Sept 25) he market capitalisation of Market cap (RM bil) Malayan Banking Bhd has LAST PRICE (RM) P/B (TIMES) YTD CHANGE (%) Malayan Banking 79.59 NAME shrunk to below RM80 bil- AFFIN Bank 1.40 0.29 -26.3 lion, as the selldown of bank- Top Glove Corp Alliance Bank Malaysia 2.18 0.56 -17.1 ing stocks continued, further Tenaga Nasional -24.8 reducing the gap between the most AMMB Holdings 2.94 0.46 T Public Bank valuable company on the local stock BIMB Holdings 3.45 0.97 -21.6 Hartalega Holdings exchange and the next in line, Top CIMB Group Holdings 3.06 0.54 -40.6 IHH Healthcare Glove Corp Bhd. Maybank declined Hong Leong Bank 14.84 1.12 -14.2 0.14%, or one sen, to RM7.08 last Fri- Petronas Chemicals Group Hong Leong Financial Group 13.80 0.75 -18.3 day, valuing it at RM79.59 billion. A Maxis 0.97 -18.1 total of 4.51 million shares were trans- Malayan Banking 7.08 acted. On a year-to-date basis, the Sime Darby Plantation Public Bank 15,44 1.34 -20.6 counter has declined 18.1% (see table). 20 30 40 50 60 70 80 4.60 0.70 -20.4 Note: As at Sept 25 RHB Bank Top Glove, on the other hand, gained 2.92% or 25 sen to RM8.80, The Financial Services Index valuing it at some RM71.55 billion. between the two was RM85.09 bil- "buy" calls,12 "holds" and five "sells". (down 1.41% or two sen to RM1.40). closed 0.06%, or 7.82 points, lower A total of 76.30 million shares were lion —Top Glove then had a market Most of the other banks on the Among those that registered at 12,327.62 points. In contrast, the traded. YTD, the stock is up 461.70%. cap of RM12.03 billion compared local bourse also registered minor minor gains were CIMB Group Holdings Bhd (up by 0.33% or one FBM KLCI closed 8.34 points high- This has reduced the gap be- with Maybank's RM97.13 billion. gains at most last Friday. Among the sen to RM3.06), RHB Bank Bhd (up er at 1,509.14, as renewed buying tween the companies to RM8.04 Maybank is now down 5.47% decliners were AMMB Holdings Bhd by 0.22% or one sen to RM4.60) and interest in glove counters helped billion, from RM10.18 billion last from the 12-month consensus tar- (down 0.34% or a sen to RM2.94),Pub- Alliance Bank Malaysia Bhd (up by lift the benchmark index. Thursday and RM15.39 billion on get price (TP) of RM7.49 it garnered lic Bank Bhd (down 0.52% or eight 0.46% or one sen to RM2.18). CONTINUES ON PAGE 24 Wednesday. On Dec 31,2019, the gap on Bloomberg. The stock has four sen to RM15.44) and Affin Bank Bhd Headline Market cap gap between Top Glove and Maybank narrows to RM8 bil MediaTitle The Edge Date 28 Sep 2020 Language English Circulation 25,910 Readership 77,730 Section Corporate Page No 20,24 ArticleSize 606 cm² Journalist ARJUNA CHANDRAN PR Value RM 31,543 Recent political developments further weigh on already weak sentiment "It suits a long-term dividend shares last Monday to bump up FROM PAGE 20 Malaysia as listed banks in Singapore As for dividend payouts, while portfolio," he said. Based on Bloomb- its shareholding to 5.1% or 414.999 Fortress Capital Asset Manage- and Hong Kong are also experiencing Maybank withheld its payout for the erg data,Maybank has an indicative million shares. ment (M) Sdn Bhd investment ad- similarly weak sentiment,Ng added. second quarter ended June 30,2020 dividend yield of 5.5%. EPF made a comeback as a sub- viser and director Geoffrey Ng told TA Investment Management (2QFY2020), surprising and disap- stantial shareholder of Kossan Rub- The Edge that there was no catalyst chief investment officer Choo pointing many, president and CEO ber Industries Bhd in June, and has for investors to accumulate banking Swee Kee also attributed the fall in Datuk Abdul Farid Alias has said EPF buys glove shares Meanwhile,the country's largest re- been mopping up shares in this rub- stocks.Recent political developments Maybank and other banking stocks the banking group is committed to tirement fund,the Employees Provi- ber glove company too. Within a four- in the country further weighed on to poor sentiment, as investors are keeping its yearly dividend policy, dent Fund (EPF) has been buying up month period, it has increased its the already weak sentiment, he said. worried about the impact of the loan which is a payout ratio of between 40% and 60% of its net profit. glove stocks. shareholding to 8.09%,which means The overall sentiment on banks moratorium on bank earnings. On Sept 18, it re-emerged as a a net acquisition of a 3.08% stake or is reflective of the expectation of A fund manager,who declined to substantial shareholder of Top Glove 39.38 million shares. B lower corporate earnings. The cur- Is now a good time to buy in? be named, said he was still attracted with a 5.05% stake after acquiring 13.7 rent environment is marked by low While Maybank's share price now to Maybank's dividend yield and the million shares in the world's largest This story first appeared in The interest rates, slower loan growth and appears to represent "good value", potential price recovery when the rubber glove maker. Edge CEO Morning Brief on Sept higher non-performing loans (NPLs). Choo does not think the stock has economy returns to normal after Subsequently, it bought more 25, and has been updated However, this is not just restricted to hit bottom yet. the pandemic is over. .

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