KLSE Energy Sector - Battle of the fastest
A higher float stock price action are generally slower compared to a lower float stock. We pick few energy stocks (some leader and laggard) to illustrate the price action across the H4 timeframe over 2 years timeline. We also include the WTI & Brent Crude Oil price to show the sector momentum.
How we get the balance float:
Based on our stock pick in Energy sector, following is the list from lightest to the heaviest.
Based on our observation, higher float shares (SAPNRG, VELESTO) tends to move slowly compared to its lower float shares (CARIMIN, WASEONG). This play significant role during sectoral play for better short-term gain. This however discount any stock-specific sentiment (ie project award, court action, etc) as that would result to individual stock demand surge/purge. As a rule of thumb, stocks with float < 500M can provide good price action.
How we get the balance float:
- We use https://pickastock.info to get the NOSH (ie Shares issued)
- Next we use https://bursamarketplace.com to calculate % owned by funds, institutions, etc. The balance unutilized is what we called float (or balance float)
- Balance floated shares = NOSH x balance unutilized %
Based on our stock pick in Energy sector, following is the list from lightest to the heaviest.
CARIMIN 56M float shares- MYX:WASEONG 142M float shares
DAYANG 215M float shares- MYX:SERBADK 405M float shares
- ALAM 754M float shares
VELESTO 1449M float shares- SAPNRG 4130M float shares
Based on our observation, higher float shares (SAPNRG, VELESTO) tends to move slowly compared to its lower float shares (CARIMIN, WASEONG). This play significant role during sectoral play for better short-term gain. This however discount any stock-specific sentiment (ie project award, court action, etc) as that would result to individual stock demand surge/purge. As a rule of thumb, stocks with float < 500M can provide good price action.
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