Handal Resources Bhd (-ve)
SHARES in loss-making Handal Resources Bhd (fundamental: 1.25/3, valuation: 0.9/3) triggered our proprietary momentum algorithm for the 10th time this year.
The counter closed one sen or 2.35% higher to 43.5 sen with a market capitalisation of RM64.42 million. Some 1.86 million shares changed hands, exceeding the counter’s 200-day average volume of 384,189 shares. The stock is trading below its book value.
The group is in the red after recording a net loss of RM967,000 for the first quarter ended March 31, 2018 from a net profit of RM659,000 a year ago. Revenue shrank 2% year-on-year to RM14.11 million from RM14.33 million.
Handal expects the current financial year to be challenging as the outlook for the oil and gas sector remains clouded by global oil supply uncertainties.