Kwong Wah Report on Vivocom’s Share Price Movement

Stock Market

Note: This is a translation from the Kwong Wah media report dated 7 November 2020 for the benefit of English readers.

Ever since Vivocom’s Heads of Agreements (HOA) to acquire V-Development on 27th October 2020, its share price has been on a tear shooting upwards like a turbo powered rocket with sustainably high volumes and a most healthy sign for the past 6 days.

Since the HOA announcement, Vivocom’s share price is up 122.22% from RM0.45. Its share price went to year-to-date high at RM1.19 before closing at RM1.00 on 6th November 2020.


A whooping grand total of 705 million shares have been traded in the span of 6 days. In other words, an average of 118 million shares per day have changed hands. This is 759.37% higher than its 3-month average daily traded volume of 13.68 million shares per day.

Vivocom’s value transacted amounted to total of RM510 million in the past 6 days, averaging RM85.04 million per day. This is 749.84% higher than its 3-month average daily traded value of RM10 million per day.

Vivocom was also third most traded in terms of value on 4th and 6th November respectively, trailing behind only Top Glove and Supermax, two of the stock market’s darling heavy weights.

The exceptional liquidity of Vivocom’s shares, as seen from its high volume and value traded as well as a tight price spread, is a rare phenomenon for small-mid cap stocks, as this kind of liquidity is usually seen in large cap stocks only. It is beloved by investors as it means investors could enter and exit at any given point in time without any difficulty.

The buy rate is consistently higher than 50%, with the past 6 days average at 59.8%, showing that there are more buyers than sellers in the market.

Looking at it from technical analysis point of view, we can clearly see ‘three white soldiers’ candlestick formed from 2nd to 4th of November. ‘Three white soldiers’ in the simplest terms means that there is a strong positive change in market sentiment in stock, with buyers significantly outnumbering the sellers, causing the share price to increase significantly three days in a row.

The recent rally in the past 3 days also caused the ‘golden cross’ to widen. Golden cross is when a shorter-term moving average (usually 50 days moving average) crosses a longer-term moving average (usually 200 days moving average).

Summary: Despite Vivocom’s share price having dropped by 6.54% on Friday to the RM1.00 level, it seems as though Vivocom’s share price is riding on an unstoppable momentum upwards with no end in sight and is worth monitoring closely. Vivocom’s correction today has attracted a lot of interests from savvy traders.

The modus operandi for these savvy traders is to buy when some retailers panic sell, and patiently wait for the next catalyst. There are minimal risks of share price collapse as confirmed by the high buy-up rate of an average of 59.8% for the past 6 days. This could very well be this year’s darling stock of the fourth quarter. It is worth paying close attention to its fierce uptrend.

DISCLAIMER

1.       All contents contained herein have been extracted from the announcement released by the Company dated 27 October 2020 which is already publicly available on Bursa’s official website. They are for sharing purposes only and shall not be construed as a recommendation to buy or sell the stock mentioned.

2.       The technical targets expressed in the enclosed chart are solely opinions only based on trading analysis of the last several trading sessions as pointed out. Any action that you take as a result of information, analysis, or commentary of the enclosed chart is your sole responsibility ultimately.

3.       It is highly recommended that you consult your investment advisor or conduct your own due diligence before making any investment decision.