KUALA LUMPUR (Oct 3): theedgemarkets.com highlighted six stocks with momentum at Bursa Malaysia’s afternoon market close today. It showed two with positive momentum and four with negative momentum.

Stock with positive momentum was:

Kumpulan Powernet Bhd – down 0.5 sen at 98.5 sen

Mega First Corp Bhd – up two sen at RM4.18

Stocks with negative momentum were:

Guan Chong Bhd – up 14 sen at RM4.31

MMAG Holdings Bhd – up two sen at 35.5 sen

Pansar Bhd – down 0.5 sen at 60 sen

Prolexus Bhd – up 0.5 sen at 81.5 sen

The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum.

This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements.

The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell.  Note also that momentum generally only persists for a short period of time.

However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum.