Stock With Momentum: Ajiya Bhd

This article first appeared in The Edge Financial Daily, on January 15, 2020.
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Ajiya Bhd (+ve)
TRADING of shares in Ajiya Bhd (fundamental: 2.25/3, valuation: 1.1/3) triggered our momentum algorithm yesterday for the second time in the past year.

The stock closed 2.5 sen or 5.81% higher at its six-month high of 45.5 sen yesterday. A total of 942,200 shares were traded, almost 10 times higher than the counter’s 200-day average trading volume of 97,941 shares.

Its share price gain was despite it announcing that its consortium with Xinyi Solar (M) Sdn Bhd and U-Li Solar Energy Sdn Bhd had failed to clinch the tender for the large-scale solar photovoltaic Edition 3 last Friday. In two days, the counter has gained 7.05% or three sen from 42.5 sen.

Ajiya said it received an outcome letter dated Jan 6 from the Energy Commission stating that the bid by the consortium was unsuccessful.