WHILE newly minted Prime Minister (PM) Datuk Seri Anwar Ibrahim has yet to officially announced his Cabinet line-up, two penny stocks related to UMNO president Datuk Seri Ahmad Zahid Hamidi soared on prospects of the Barisan Nasional (BN) chairman being made one of Malaysia’s two Deputy Prime Ministers (DPM).
Zahid’s daughter Datuk Nurulhidayah Zahid is the director and vice chairman of MQ Technology Bhd (MQTech) while his son-in-law Datuk Saiful Nizam Mohd Yusoff sits on both the SMTrack’s board as an independent non-executive director (INED) and Jiankun International Bhd’s board as deputy chairman.
Both MQTech and SMTrack closed as the second and third most actively traded stock today behind Advance Synergy Bhd (ASB) which is traditionally linked to Anwar who is also the Pakatan Harapan (PH) chairman.
While ASB which saw 249.7 million shares traded is in consolidation mode, declining 1 sen or 4.88% to 19.5 sen after having hit a 52-week of high of 32 sen on the run-up to Anwar’s appointment as PM on Thursday (Nov 24), both MQ Track and SMTrack inched up 1 sen (+25%) each to 5 sen and 6 sen (+20%) with 132.07 million shares and 127.31 million shares exchanged hands.
Meanwhile, Jiankun was up 2 sen or 9.3% to 23.5 sen with 8.69 million shares traded.
According to a stock chart analyst, the biggest share price resistance for MQTech and SMTrack are at 5.5 sen and 6.5 sen respectively.
“MQTech and SMTrack have the potential to repeat the performance of ASB which is linked to Anwar,” he told FocusM on condition of anonymity.
“Once they break through the resistance lines, they would enter an upward trend. If Zahid is appointed as DPM, the three stocks can expect to follow the uptrend pattern of ASB. When this happens, the target prices of MQTech and SMTrack should be around 21 sen.”
For the past two weeks, ASB has emerged a hot stock by becoming the most traded counter on Bursa Malaysia very other day. Since the dissolution of the Parliament on Oct 10, its share price has risen from a low of 6.5 sen on Nov 4 to a high of 32 sen on Nov 24 – a surge of 400%.
In fact, ASB’s stock price trend is completely in line with the “buy on rumours and sell on news” trading model. – Nov 29, 2022
