KUALA LUMPUR (Jan 11): theedgemarkets.com has highlighted seven  stocks with momentum at afternoon market close today. Two stocks showed positive momentum and five stocks displayed negative momentum.

The stocks with positive momentum were:

Guan Chong Bhd up 1 sen at RM1.47

Asia File Corp Bhd up 20 sen at RM5.02

The stocks with negative momentum were:

Favelle Favco Bhd up 2 sen at RM3.07

Ekovest Bhd up 5 sen at RM1.25

Eurospan Holdings Bhd up 2 sen at 82 sen

Fututech Bhd up 12 sen at RM1.82

Cycle & Carriage Bintang Bhd up 20 sen at RM3.80

The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum.

This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements. The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell.  Note also that momentumgenerally only persists for a short period of time.

However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)