KUALA LUMPUR: Politically-linked stocks are hot today with the prices of two counters related to former deputy prime minister Datuk Seri Ahmad Zahid Hamidi rising in active trade.
The trading volume of MQ Technology Bhd (MQTech) and SM Technology Bhd (SMTrack) ranked second and third most active respectively on Bursa Malaysia.
MQTech closed at RM0.050, with a total of 132.1 million shares traded, while SMTrack settled at RM0.060, with 127.3 million shares changing hands.
Zahid's daughter Datuk Nurulhidayah Ahmad Zahid is the director and vice chairman of MQTech, while his son-in-law Datuk Saiful Nizam Mohd Yusoff is on the SMTrack board.
According to stock chart analysts, the biggest share price resistance for MQTech and SMTrack were RM0.055 and RM0.065 respectively.
"MQTech and SMTrack have the potential to repeat the performance of Advance Synergy Bhd, which is linked to Prime Minister Datuk Seri Anwar Ibrahim," said one of them.
"Once they break through the resistance lines, they would enter an upward trend. If Zahid is appointed as Deputy Prime Minister (DPM), their share prices would follow the uptrend pattern of Advance Synergy.
"When this happens, the target price of MQTech and SMTrack should be around RM0.210 for both companies," the analyst added.
Advance Synergy has become a darling of the local stock market based on its performance the past few weeks, .
For the past two weeks, Advance Synergy was the most traded shares in the market each day.
Since the dissolution of Parliament, the counter has been rising from a low of RM0.065 on Nov 4 to a high of RM0.32 on Nov 24, a surge of 400 per cent.
Today, its share price retreated to RM0.195 with 249.7 million shares traded.
Advance Synergy's price trend is completely in line with the trading model of "buy on rumors and sell on facts."
The question that market participants are most concerned about today is "Which politically connected stock will be rising?"
Market observers said the answer to the question was related to "Who will be the next DPM?"
The unity government led by Anwar is dominated by Pakatan Harapan and Barisan Nasional. Hence, Zahid could be a candidate for the DPM post.