Malaysian jeweller Poh Kong plans to open three more stores this year, boosting its profit. The improved profit is also likely to be driven by higher gold prices, tipped by some to range from US$1300–$1400 per ounce later this year. The firm’s new stores will open in IOI Mall Puchong, Aeon Nilai and South Key Mall in Johor, taking its network to 95 outlets nationwide.
“We are aware of the US-China trade war, as well as the anticipation of the US interest rate hikes and currency fluctuations that alter consumer sentiments that could lead to market uncertainty,” said MD Eddie Choon Yee Seiong. “Yet, we are optimistic to maintain or do better in 2019 as compared to the previous financial year.”
Indicators of upward movement for the company include the improving economy and the strength of the Malaysian ringgit against the American dollar.
While burgeoning demand saw the firm’s performance improved during the last financial year, fluctuations in gold prices and a weaker ringgit saw a steep drop in actual profits at 20.75 per cent lower than the previous year.
“We reckon gold will benefit from the ongoing concerns looming around the US-China trade war concerns, as investors may find the precious metal a safe haven,” said Choon.