DNeX most-actively traded stock in morning trades

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KUALA LUMPUR (Nov 3): Dagang NeXchange Bhd (DNeX), an information communication technology company, was the most-actively traded counter on Bursa Malaysia in the morning trading session, just after its collaboration with Malayan Banking Bhd (Maybank) last Friday to launch a centralised online trade financing facility.

At 11.27am, DNeX saw 82.2 million changed hands, representing about 10.6% of its issued share base of 775.24 million.  

The counter hit a high of 40.5 sen this morning from its previous close of 38 sen. DNeX was traded 0.5 sen or 1.32% higher at 38.5 sen at 11.27 am, giving it a market capitalisation of RM302.35 million.  

Last Friday, Maybank and DNeX collaborated to launch myTrade2Cash, a comprehensive trade financing facility that allows small and medium enterprises (SME) to apply for trade financing facilities from Maybank.  

This would be a new income source for DNeX, the earnings of which, more than doubled in the first half ended June 30.

The online platform, offered and managed by DNeX, is estimated to serve more than 100,000 SME customers nationwide via the National Single Window e-Commerce Trade Facilitation service. The portal, which went live last Friday, offers financing of between RM500,000 and RM3 million.

Maybank said it aimed to facilitate RM5 billion in trade financing for Malaysian-based SME exporters in the next three years.

This new service would boost the local SME industry, which contributed 33% to Malaysia's gross domestic product last year and is targeted to reach 41% in 2020, said Maybank global banking group head Amirul Feisal Wan Zahir.

Prior to the launch last Friday, DNeX was slapped with an unusual market activity query by Bursa Malaysia due to the rise in share price and volume. However DNeX said it was not aware of any corporate development relating to its business that had not been previously announced to Bursa Malaysia.

For the six months ended June 30, DNeX’s net profit expanded to RM5.5 million from RM2.3 million in the previous corresponding period. Revenue came in lower at RM39.2 million compared with RM45.4 million.