KUALA LUMPUR (March 21): Shares in gold-related counters, including Poh Kong Holdings Bhd, Tomei Consolidated Bhd, and Bahvest Resources Bhd, rose on Thursday, as gold prices surged to a record high after the US Federal Reserve (Fed) left interest rates unchanged.
Shares of Poh Kong climbed as high as 94 sen during Thursday's trading session. It closed slightly lower at 93 sen, still up 2.5 sen or 2.76% from the previous close, with 2.35 million shares changing hands. At 93 sen, the company was valued at RM381.6 million.
Meanwhile, its peer Tomei saw its share price surge as high as RM1.47. The stock later pared gains to close at RM1.42, still up three sen or 2.16%, with 958,900 shares changing hands. At RM1.42, the group was valued at RM196.8 million.
Since the beginning of the year, Tomei has gained 14.52%, while Poh Kong has gained 7.51%.
Bahvest also saw a slight gain of three sen or 7.14% to 45 sen, with 9.59 million shares exchanged. At 45 sen, the company was valued at RM559.7 million. Year to date, however, its share price had dropped 10%.
Other gold-related stocks, such as Zhulian Corp Bhd and Niche Capital Emas Holdings Bhd, also traded in the green on Thursday. Zhulian saw its share price rise three sen or 2.13% to RM1.44, while Niche Capital was up half one sen or 7.69% to 14 sen a share.
On Wednesday, Fed chair Jerome Powell said recent high inflation readings had not changed the underlying "story" of slowly easing price pressures in the US, as the central bank stayed on track for three interest rate cuts this year.
Lower interest rates weigh on the dollar and decrease the opportunity cost of holding non-yielding bullion, which makes gold cheaper for investors holding other currencies.
Gold prices hit an all-time high of US$2,220.89 (RM10,457.95) per ounce earlier on Thursday. At the time of writing, the metal was trading at US$2,204.40 an ounce.