This article first appeared in The Edge Financial Daily on November 22, 2019
TSH Resources Bhd (-ve)
PLANTATION firm TSH Resources Bhd (fundamental: 0.5/3, valuation: 0.8/3) saw its stock’s trading volume surge to 3.2 million or over 23 times its 200-day average of 135,928 shares yesterday, triggering our momentum algorithm for the first time this year.
Its share price closed two sen or 1.77% higher at RM1.15, a level last seen in early February this year. It was unclear why the share price spiked by about 19.79% in just two days from 96 sen on Tuesday.
However, it should be noted that analysts have upgraded their ratings on the plantation sector to “overweight” — the latest being Hong Leong Investment Bank Research which included TSH as one of its top picks with a target price of RM1.05.
Sentiment towards palm oil is expected to sustain into 2020 due to supply constraints, lower output of alternative oils and prospects of better demand.