This article first appeared in The Edge Financial Daily on January 30, 2020

Oceancash Pacific Bhd (+ve)
THERMOPLASTIC felt manufacturer Oceancash Pacific Bhd triggered our momentum algorithm for the first time this year. The counter saw 31.23 million shares traded — 92 times its 200-day average volume of 338,076 shares.

The counter fell 11.5 sen or 15.65% to close at 62 sen yesterday, after a huge gain on Tuesday that brought it to its one-year high of 74 sen on the back of expectations that demand for non-woven products would spike with the coronavirus outbreak.

In a recent note, CGS-CIMB Research pointed out that the spillover benefits are miniscule as Oceancash’s non-woven products used for face masks make up less than 1% of the group’s annual revenue.

The research house has a “reduce” call on the counter with a target price of 53 sen.