Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Wednesday, January 27, 2010

DRB-HICOM up in a bear market

DRB-HICOM Bhd's (1619) shares rose amid a sharply lower market yesterday after the company confirmed that it was in early talks to sell its stake in Bank Muamalat to Bahrain-based lender Al Baraka.

The shares rose by 1 per cent to RM1.05 yesterday. There was a jump in volumes traded to 5.3 million shares, its highest in a day since September last year.

Its performance stood out amid a 1.1 per cent drop in the FTSE Bursa Malaysia KLCI, to 1,283.02 points.

DRB, essentially an automotive and property group, owns 70 per cent of the local Islamic lender while state investment firm Khazanah Nasional Bhd owns the rest.

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