Bursa queries IFCA on share price, volume rise

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KUALA LUMPUR (Jan 16): Bursa Malaysia has issued an unusual market activity (UMA) query on IFCA MSC Bhd following the recent rise in the latter's share price and volume, according to a statement on the bourse regulator Bursa's website.

IT software entity IFCA's (fundamental score: 3; valuation score: 1.5) share price fell 3.5 sen or 3.5% at 12:30pm today to settle at 96 sen for a market capilisation of RM465.3 million.

The stock had risen to current levels from a six-month low of 16.5 sen seen on July 18, 2014.
 
Today, Bursa told IFCA : "We draw your attention to the recent rise in price and volume of your company's shares."

Bursa said IFCA needed to disclose any corporate development, which might have led to its share trade dynamics.

IFCA had not responded to Bursa's UMA query at the time of writing.

However, the investment fraternity has noted IFCA's prospects ahead of Malaysia's goods and services tax (GST) implementation this April.

Investors are anticipating that IFCA will gain from the sale of GST-related software to companies here.

CIMB Investment Bank Bhd analyst Nigel Foo wrote in a note dated October 10, 2014 that IFCA might secure between RM60 million and RM70 million in sales from GST software upgrade and training in 2014 and 2015.

IFCA's regional expansion is also expected to support income growth, according to Foo.

(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.)