Stock With Momentum: Mesiniaga

This article first appeared in The Edge Financial Daily, on January 23, 2019.
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Mesiniaga Bhd (-ve)

TRADING of shares in Mesiniaga Bhd (fundamental: 1.7/3, valuation: 2.6/3) triggered our momentum algorithm yesterday for the second time this year. The group’s share price closed 34 sen or 29.31% higher at RM1.50 after 187,800 shares were traded, versus the counter’s 200-day average trading volume of 12,909 shares.

Last Friday, Mesiniaga said it had secured a contract worth RM1.9 billion for the Enhanced Malaysia International Internet Gateway (EM-IIG) project undertaken by Xiddig Cellular Communications Sdn Bhd.

The contract — effective last Friday and ending on March 31, 2020 — is for the commissioning of the core, metro distribution and access network with related support systems for the EM-IIG project.

The EM-IIG project, costing RM5.45 billion, involves installing undersea fibre-optic cable linking Hong Kong’s international Internet hub with Sabah, Sarawak and Peninsular Malaysia, to increase Internet speed, access and efficiency.