Stock With Momentum: MMC Corp

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This article first appeared in The Edge Financial Daily, on April 4, 2016.

MMC Corp Bhd (+ve)

SHARES of MMC Corp Bhd (fundamental: 1.1/3; valuation: 2.4/3) triggered the momentum algorithm for the first time, fell 9 sen or 4.1% to RM2.10, with some 5.4 million shares done.

A joint venture between MMC Corp Bhd and Gamuda Bhd was awarded the largest contract for the construction of the mass rapid transit (MRT) Sungai Buloh-Serdang-Putrajaya (SSP) Line (MRT2), worth RM15.47 billion.

Following the announcement, shares of the group rose 8 sen or 3.8% to reach a three-month high of RM2.19, and was among top gainers on the board on Thursday.

MMC currently trades at 0.7 times book value. The group recommended a final single-tier dividend of 3.8 sen per share, amounting to RM115.71 million for FY15.