Stock With Momentum: Kossan Rubber Industries

Kossan Rubber Industries Bhd (-ve)
TRADING of shares in Kossan Rubber Industries Bhd (fundamental: 1.7/3, valuation: 0.7/3) triggered our momentum algorithm for the second time this month and the third time this year.

The stock closed 3.52% or 18 sen higher at RM5.30 yesterday, giving the group a market capitalisation of RM6.78 billion. The counter saw 10.17 million shares traded, exceeding its 200-day average trading volume of 1.68 million shares by over six times.

Kossan, like other rubber glove manufacturers, advanced as investors reacted to news of Covid-19 being classified as a pandemic by the World Health Organization.

Rubber glove manufacturers were one of the few bright spots on the local bourse yesterday. The healthcare index, whose component stocks include rubber glove manufacturers, was the only Bursa Malaysia index to have risen.