KUALA LUMPUR (Dec 28): theedgemarkets.com highlighted five stocks with momentum at Bursa Malaysia’s afternoon close on Tuesday (Dec 28). Four showed negative momentum, while one indicated positive momentum.

The stocks with negative momentum were:

SMTrack Bhd — up half a sen at 14.5 sen

Versatile Creative Bhd — up five and a half sen at 69 sen

LTKM Bhd — up one sen at RM1.36

XL Holdings Bhd — up two and a half sen at 72.5 sen

The stock with positive momentum was:

Wellcall Holdings Bhd — up three sen at RM1.17

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.