Hot Stock IFCA MSC shares, warrants rebound before 2Q results

by **Cals** Mon 18 Aug 2014, 22:25

Hot Stock IFCA MSC shares, warrants rebound before 2Q results

Business & Markets 2014

Written by Kamarul Anwar of theedgemalaysia.com

Monday, 18 August 2014 16:36

KUALA LUMPUR (Aug 18): IFCA MSC Bhd, whose shares and warrants have flattened after their recent rise, rebounded ahead of its second quarter results announcement, expected tomorrow (Aug 19).

At 3:41 pm, shares of the accounting software producer were 3.5 sen or 14.58% higher at 27.5 sen with 36.43 million shares traded. IFCA MSC’s counter was earlier traded to a high of 28 sen, its highest price since Jul 31 when it touched 31 sen before closing at 28 sen. The stock cooled afterwards.

Concurrently, IFCAMSC-WA warrants were up by 2.5 sen or 12.82% to 22 sen after hitting the day’s high of 22.5 sen. A total of 24.24 million of the derivatives changed hands. At the last traded price, the one-for-one warrants were traded at a 16.36% premium to its mother share. IFCAMSC-WA has a strike price of 10 sen and will expire on Feb 15, 2016.

An executive familiar with IFCA told theedgemalaysia.com that the accounting software producer would announced its results for the second quarter ended Jun 30, 2014 (2QFY14) tomorrow.

Recently, The Edge and theedgemalaysia.com quoted CEO Ken Yong and Chief Operating Officer Leong Nyu Kuan as saying that IFCA was looking to finally reap the benefits of the impending goods and services tax (GST) system. Businesses are required to change their accounting software before the new tax system kicks in on Apr 1, 2015.

IFCA has a niche market among property developers and hotel and club operators. According to Yong, about 70% of the listed property developers in Malaysia are clients of IFCA.

The company is also expanding in China, according to Leong, and has seen an increase in its client base there after a long gestation period.