On last Thursday Dayang dropped 24 sen due to its 1st quarter small loss, partly caused by interest charges and foreign exchange loss. Its loss is less than the corresponding quarter of last year. The SE monsoon during the 1st quarter, exasperated the loss.
Investors over reaction
From my long experience in watching the stock market, investors always over react due to good or bad news. When investors see some good news, they will rush to buy aggressively. In this case, even the loss is small, shareholders dumped their shares as quickly as soon as possible; it is better to cut loss. They are so fearful. They cannot control their emotion to think logically.
As a result, the price dropped 24 sen on last Thursday. Most of the sellers were weak holders, stupid or uninformed investors who did not know the real quality of the company and many had to sell to meet margin call.
Fortunately, on Friday, the price rebounded and it went up 3 sen. This will encourage many investors to buy back. This increased share price will definitely reduce forced selling. I hope it is the pivoting point when it changes its down trend to uptrend which is the best time to buy. Nevertheless, I believe the worst is over.
Good profit growth prospect
I agree with our famous Mr Ooi Teik Bee that the next few quarters will show good profit growth which is the most powerful catalyst to move share prices.
Note: My aim for writing this article is honourable. I am not asking readers to buy to support the share price because the daily volume is tens of million shares change hands and whether you buy or sell will not make any difference.
https://klse.i3investor.com/blogs/koonyewyinblog/207951.jsp
