Stock With Momentum: Poh Kong Holdings

This article first appeared in The Edge Financial Daily, on January 10, 2020.
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Poh Kong Holdings Bhd (-ve)

TRADING of shares in Poh Kong Holdings Bhd (fundamental: 1.3/3, valuation: 2/3) triggered our momentum algorithm yesterday for the second time this week.

A total of 20.39 million shares were traded compared with the counter’s 200-day average of 257,538 shares. The stock closed eight sen or 11.35% lower at 62.5 sen with a market capitalisation of RM256.47 million. It was the largest decliner across the local bourse where gainers outstripped losers.

The gold and gemstone jewellery retail chain hit a high of 72 sen on Wednesday as investors sought safe haven in gold, before paring gains as fears of a larger conflict in the Middle East abated amid milder rhetoric between Iran and the US.

Gold prices, which on Wednesday surged past the US$1,600 (RM6,544) per ounce mark to its highest since March 2013, retreated to trade mostly within the US$1,540-1,562 range yesterday as of writing.