Rexit Bhd (-ve)
TRADING of shares in Rexit Bhd (fundamental: 2.4/3, valuation: 1.5/3), which has secured a five-year outsourcing service agreement to develop and operate the mySalam portal for the B40 group, triggered our momentum algorithm yesterday for the first time this year.

The business application solutions provider’s shares rose nine sen or 14.88% to close at 69.5 sen, with 1.04 million shares done — about four times higher than the counter’s 200-day average of 28,655 shares.

Rexit announced the five-year agreement that it secured from Great Eastern Takaful Bhd (GETB) on Monday. The contract, inked via Rexit’s wholly-owned subsidiary Rexit Software Sdn Bhd, will start from Jan 1, 2019 and last until Dec 31, 2023. The deal may be renewed for another two years or more, as required by GETB.

The agreement value will be calculated at RM1.40 per year per eligible member, up to a maximum of four million members. This means Rexit could get up to RM5.6 million annually from the deal.