Jewellers fall as gold loses lustre

Jewellers fall as gold loses lustre
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KUALA LUMPUR (Nov 24): Shares in jewellers Poh Kong Holdings Bhd and Tomei Consolidated Bhd fell this morning as gold prices slumped 2% to a four-month low yesterday.

Poh Kong fell as much as 2 sen or 2.48% to 78.5 sen in the morning. At 11.45am, the counter pared some losses at 79.5 sen, but was still lower by 1 sen or 1.24%.

The counter saw 92.4 million shares changed hands. If compared with its historical peak of RM1.55 on Aug 7, the counter has shed 48.71%.

Meanwhile, Tomei dropped as much as 3.5 sen or 4% to 84 sen in the morning trades. At 11.48am, the counter pared its losses to trade 3 sen or 3.43% lower at 84.5 sen.

The stock saw 83.11 million shares traded. From its historical high of RM1.55 on Aug 10, Tomei has fallen by some 45.48%.

Reuters reported yesterday that gold fell nearly 2% to its lowest in four months as better-than-expected US business activity data and optimism about development in Covid-19 fuelled expectation for a stronger economic recovery and drove investors to riskier assets.  

According to the report, spot gold dipped 1.8% to US$1,836.71 per ounce by 10:29am EST (1529 GMT), after falling to its lowest since July 21 at US$1,834.95. US gold futures shed 2% to US$1,834.80.

Lam Jian Wyn