Stock With Momentum: Bursa Malaysia

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This article first appeared in The Edge Financial Daily, on March 17, 2017.


Bursa Malaysia Bhd (-ve)
SHARES in Bursa Malaysia Bhd (fundamental: 2.3/3, valuation: 1.1/3) triggered our momentum algorithm for the first time this year. The counter closed 16 sen or 1.7% higher at RM9.34 yesterday, with 5.57 million shares traded. In comparison, its 200-day average volume was only around 618,301 shares.

Bursa Malaysia posted a net profit of RM50.17 million in the fourth quarter ended Dec 31, 2016 (4QFY16), almost flat compared with RM50.6 million a year earlier, on lower operating revenue. Revenue fell 8.72% to RM123.74 million, from RM135.56 million, as 4QFY16 saw a lower average daily value for on-market trades and direct business trades, as well as a lower effective clearing fee rate.

For the full year, Bursa Malaysia’s net profit fell 2.51% to RM193.62 million from RM198.61 million. Revenue declined 2.26% to RM506.78 million from RM518.5 million.

The stock currently trades at a trailing 12-month price-earnings ratio of 25.43 times. It has a trailing 12-month dividend yield of 3.81%.