Hot Stock SHH surges 10% on promising outlook

by **Cals** Mon 02 Nov 2015, 19:02

Hot Stock

[size=28]SHH surges 10% on promising outlook

By Tan Siew Mung / theedgemarkets.com | November 2, 2015 : 12:41 PM MYT

KUALA LUMPUR (Nov 2): SHH Resources Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 2.50) rose as much as 22 sen after the export-based wood-furniture manufacturer said a weaker ringgit against the US dollar would support earnings and dividends.

SHH rose to its highest so far today at RM2.45. At 12:30pm, the stock cut gains at RM2.40 for a market capitalisation of RM120 million.

The fifth-largest gainer on Bursa Malaysia saw 184,300 shares traded. SHH shares had risen following a report in The Edge Financial Daily (Edge FD) today.

Edge FD, quoting SHH executive deputy chairman Ling Hee Keat, reported that SHH was looking at expanding its business overseas, which included new markets in Europe and Australia.

Ling said SHH's earnings was expected to benefit from a strong US dollar, hence, better dividends by the company.

Analysts said it was not surprising to see investors buying SHH shares as the stock was an undiscovered gem under the strengthening US dollar theme. A weaker ringgit against the US dollar translates into higher income for exporters like SHH when they convert their US dollar-denonimated sales into the ringgit.

At 12:11pm, the ringgit changed hands at 4.2920 versus the US dollar. The ringgit has weakened to current levels from the strongest point at 3.2920 over the last one year.

“The counter has been pushed up because it is export-oriented, and it is one of the beneficiaries of the strong US dollar. The company’s peers are actually enjoying the same increase in share price," an analyst told theedgemarkets.com over telephone.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to [size=15][You must be registered and logged in to see this link.] for more details on a company's financial dashboard.)[/size]
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