KUALA LUMPUR (Mar 9): IFCA MSC Bhd rose as much as seven sen or 5% to RM1.37 as investors bought shares in the goods and services tax (GST)-compliant software provider ahead of the policy implementation starting this April 1.

 
IFCA (fundamental: 3; valuation: 1.5) pared gains to RM1.34 at 11.34am with some 14 million shares changing hands. For comparison, the FBM KLCI fell 17.5 points or 1% to 1,789.46.

Rival GST-compliant software provider Censof Holdings Bhd fell 0.5 sen or 1% to 44.5 sen at 11:45am.

Remisiers, who track IFCA share trades by looking at technical data were, however, alarmed that money has been flowing out from the counter since Feb 11 until today.

SJ Securities remisier Goh Kay Chong said IFCA shares had risen for the past one year. Goh said institutional investors had entered the counter since April 2014.

“Based on the technical data, I can see that money has been flowing out since Feb 11 until today, meaning that institutional investors are holding the share price at a high price and selling at the same time.

"It is a divergent situation. Investors need to be very careful,” Goh said.

Last Friday (Mar 6), CIMB Investment Bank Bhd wrote in a note to clients that the research firm had maintained its “add” rating on IFCA shares with an unchanged target price of RM1.48.

CIMB said potential catalysts for IFCA included a transfer from the ACE Market to the Main Market this year.

(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.)