Gas Malaysia Bhd (+ve)

TRADING of shares in Gas Malaysia Bhd (fundamental: 2.1/3, valuation: 1.3/3) triggered our proprietary momentum algorithm last Friday for the first time since September 2018.

The stock dropped one sen to RM2.86 with a market capitalisation of RM3.67 billion. A total of 1.71 million shares changed hands, sharply higher compared with the counter’s 200-day average trading volume of 256,600 shares.

Gas Malaysia, having reported an encouraging set of earnings in the first quarter ended March 31, 2019, expects continued growth for the rest of its financial year ending Dec 31, 2019.

The group, which is a member of MMC Corp, also plans to ramp up its capital expenditure in the next three years by 20% to 30%, compared with RM500 million it has spent collectively in the last three years.