Hot stock: Top Glove up 9.8% after group announces lifting of US import ban

SHARES of Top Glove BVA soared Friday morning on the Singapore bourse after the Malaysian glovemaker announced that it is cleared to resume exporting and selling its products to the US as at Sept 10, 2021.

Following the release of its announcement, Top Glove rose some 3 per cent or S$0.04 to S$1.16 at the market open. It requested a trading halt at 9.01am, and to lift the halt at 10am.

This uptrend continued upon resumption of trading, with the counter climbing as much as S$0.11 or 9.8 per cent to S$1.23 as at 10.03am with 4.1 million shares changing hands.

The import of certain Top Glove products was previously banned by the US Customs and Border Protection (CBP) since forced labour allegations against the glovemaker first emerged in July 2020.

A media release from the CBP said that its office of trade, in consultation with the Treasury Department, had published a forced labour finding against disposable gloves produced in Malaysia by Top Glove in the Customs Bulletin and in the Federal Register.

Disposable gloves manufactured in Malaysia by Top Glove arriving at all ports of entry in the US were seized under CBP's direction in the same month.

According to a Sept 3 CBP statement filed by Top Glove to the Singapore Exchange on Friday, CBP has determined that its March 2021 forced labour finding against disposable gloves produced in Malaysia by Top Glove is "no longer necessary".

This comes after receiving additional information provided by Top Glove, which CBP believes to establish by "satisfactory evidence" that the group's disposable glove products are no longer mined, produced, or manufactured in any part with forced labour.

In its latest announcement, Top Glove expressed its "utmost appreciation" to CBP for its responsiveness in modification of the March 2021 finding.

It also thanked the Malaysian government as well as its stakeholders for their support and understanding on the matter.

"Top Glove remains committed to the health, safety and well-being of its people. The company will continue to work hard and smart towards becoming an industry leader in this area and meeting the growing expectations of its stakeholders," it said.

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