KUALA LUMPUR: Shares of jewellers and gold-related stocks continued to attract investors' interest in early trade.
Tomei Consolidated Bhd rose 7.63%, or 10 sen to RM1.41, its highest since August 2020 and Poh Kong Holdings Bhd added 3.85%, or four sen to RM1.08, its highest in about nine months. Both counters rose in tandem with the spike in gold prices.
High gold prices benefit jewellers, as they will help boost the companies’ profit margin although high gold prices could result in lower revenue due to lower demand for their products.
Concerns over inflationary pressure helped to lift gold prices to their highest in more than three months.
Spot gold jumped 1.3% to US$1,866.84 per ounce, after hitting its highest since Feb 1 at US$1,868.26, according to Reuters.