Whoa. Today's buyback was for 13.42m shares between the price of 6.20 to 8.00.

Almost another RM100m.

Treasure shares as at end of today is 31,726,800 units.

@Imagine333

The article isn't written by KW Tan. As he mentioned, he got it from Salvador Dali's blog. (The link is there in the article - i.e. malaysiafinance.blogspot.com).

@titan3322

To make it easier, I've reproduced the relevant clause for your perusal. This is from "Top Glove's Circular to Shareholders In Relation to the Proposed Bonus Issue..." dated 30 July 2020.

2.2 No capitalisation of reserves
Under the Act, a bonus issue can be undertaken either:

(i) by way of capitalisation of the retained earnings/accumulated profits of a company; or
(ii) without capitalisation, where a company may issue and allot the bonus shares at nil consideration.

Given the above and the rationale of the Proposed Bonus Issue as set out in Section 3 of this Circular, our Board has resolved that the Bonus Shares shall be issued as fully paid shares at nil consideration, without any capitalisation from our Company’s reserves.

The Proposed Bonus Issue will increase the number of Top Glove Shares in issue but will not increase the value of our issued share capital.

@titan3322

Ever since the Malaysian laws were changed where paid up capital went to a no par value regime for shares, bonus issues are no longer dependent on retained earnings.

You can even do a bonus issue of 99 for 1 if bursa approves of it.

I'd strongly recommend you read Top Glove's Bonus issue announcement on bursa's page to confirm this for yourself.

@Bloodslug666 I sincerely doubt our government would implement a capital gains tax, especially during current times.

Especially bearing in mind that it's mainly the gloves sector that has been having successful run-up during the pandemic period.

Most other sectors are...meh.

It's more likely a windfall tax on gloves coming in, then capital gains tax over the entire market.

I can't comment on if a windfall tax is likely as there are too many factors out there, much of which I'm not knowledgeable about.

@pdchs You DO know that Malaysia doesn't have capital gains tax?

What you're saying is nonsense.

Best thing for a morning pick me up. To read the naysayers who post without a decent elaboration on why it's going to go down. Lol