This article first appeared in The Edge Financial Daily, on May 6, 2016.

MAA Group Bhd (-ve)

MAA Group Bhd’s (fundamental: 0/3, valuation: 2.55/3 ) share price rose 14 sen or 13.25% to close at RM1.20 yesterday. Some 6.66 million shares were traded, compared with the 200-day average volume of 383,045 units.

The jump in its share price was fuelled by news that MAA Group would dispose of its 75%-owned subsidiary MAA Takaful Bhd to Zurich Insurance Co Ltd for RM393.75 million cash.

The disposal is expected to be completed by year end. Upon completion of the disposal, the group is proposing to declare an interim special dividend of 35 sen per MAA Group share at an entitlement date to be determined and announced later.
 
The 35 sen dividend translates into a dividend yield of nearly 29%. However, MAA Group has been highlighted as a “red flag” stock with momentum by our proprietary algorithm based on fundamentals.

MAA Group is principally engaged in family takaful and general takaful businesses, mortgage loan securitisation, general insurance and prepaid card businesses.