PETALING JAYA: Shares of Poh Kong Holdings Bhd surged more than 30% as investors turned towards gold as a safe haven asset in the midst of market turbulence.
This followed yesterday’s attack by Iran on military facilities in Iraq housing American troops.
The attack was reportedly in retaliation to a US airstrike last week which killed one of Iran’s top military commanders.
As tensions in the Middle East escalated, Poh Kong shares surged to close at 70.5 sen yesterday, their highest level since January 2018.
Prior to yesterday, shares in the gold jeweller had already been on the rise, up 8.26% since the start of the year on its strong first-quarter results – owing to higher gold prices.
Poh Kong’s net profit for the quarter ended Oct 31,2019 jumped 2.6-fold to RM8.08mil, compared with RM3.16mil in the corresponding quarter a year earlier.
The price of gold surged above US$1,600 an ounce for the first time in over six years after the attack by Iran yesterday.
A Bloomberg report noted that gold prices jumped more than 2% after Tehran fired the series of rockets at the military facilities.
Later in the day, gold pared gains after Iran’s foreign minister said that the country was not seeking a war, but would defend itself against any further aggression.
Prior to the attacks, gold prices were already on the rise, having rallied about 5% over the past month, primarily due to the US airstrike on Iran last week.
Another listed gold jeweller that saw its share price jump yesterday was Tomei Consolidated Bhd, which rose 12.5 sen or 27% to close at 59.5 sen.
Prior to the latest attacks, Tomei shares had also risen 2.48% since the start of the year in line with the higher gold prices.
Poh Kong and Tomei were among the biggest gainers on the stock exchange yesterday.
Degem Bhd, meanwhile, was unchanged as the group is undergoing a privatisation exercise.
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