Why The Low Volatility?

Malaysia’s listed Kian Joo Can Factory (KJCB) saw its share price volatility recently dropped to a record low. What is happening here?

KJC_HVG.png

With the declining volatility in share price, it is also clearly evident that the share price of KJCB has been like in a “frozen state” (hovering around the price level of RM3.00 for considerable number of months). There was a huge volume spike in December 2016 which led to an increase in share price of KJCB from low of RM2.75 to RM3.00. Ironically, there were  two huge volume spikes in April and May but this volume spikes did not cause the same effect to that of last December. The price still remains around RM3.00 till date.

KJC_TA.png

What has changed since December – we have seen steady accumulation of shares in KJCB by EPF as shown below:

KJC_SHF.png

Is this an accumulation phase that will lead to an eventual breakout? Is there a “storm” coming? Only time will tell….

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DISCLAIMER: THIS IS A PERSONAL BLOG AND SHALL NOT BE RELIED IN WHATSOEVER MANNER BY ANYONE. ALL ARTICLES CONTAINED IN THIS SITE ARE FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. SOURCES USED IN THIS SITE HAVE NOT BEEN INDEPENDENTLY VERIFIED FOR ACCURACY, COMPLETENESS AND TIMELINESS. YOU SHOULD SEEK INDEPENDENT AND PROFESSIONAL INVESTMENT ADVICE IN REGARD TO YOUR INVESTMENT DECISIONS. THE AUTHOR MAY HOLD POSITIONS IN THE SECURITIES MENTIONED IN THE ARTICLES.

Author: Ken Utau

Markets Observer + Food Lover

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