Bursa Malaysia Halted Trading on 16 July

The third week of second half of 2020 appears to be an exciting week for investors. Malaysia's stock exchange operator cited "technical issues" as the reason for the disruption, according to a local business daily, The Edge.

No details were given by Bursa Malaysia for the reason behind the halt at 3.30 pm. The operator only informed investors that trading would resume on 17 July. Trading volume was at 9.28 billion as at 3.30 pm on 16 July compared with 8.23 billion on 15 July.

Investors and analysts observed that the technical glitch happened around the same time of the resumption of trading on Top Glove Corp Berhad. Top Glove , which is the world's largest maker of rubber gloves, had imports of its products blocked by U.S. customs authorities on 16 July.

The U.S. government accused Top Glove of labor abuse. The accusation prompted the Malaysian stock exchange to halt the trading of Top Glove shares in response to a detention order by U.S. Customs and Border Protection (CBP).

Top Glove had confirmed on Thursday that there was a detention order on disposable gloves manufactured by its subsidiaries Top Glove Sdn Bhd and TG Medical Sdn Bhd, at the US customs. The majority of their factory workers of around 11,000 out of the total 13,000 workers are from outside Malaysia.

The glove manufacturer said it is reaching out to the CBP to understand the issue better. They expect to resolve the issue within two weeks.

According to Nikei Asian Review, North America is Top Glove's largest market, accounting for 24% of total sales. Orders from the U.S. have increased 150% since before the pandemic.

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