Bursa Securities queries IFCA MSC after price surge

 Bursa Malaysia Securities has queried IFCA MSC after its shares and warrants surged on Monday on expectations it would be the biggest beneficiary when the Goods and Services Tax (GST) in enforce for the property sector.

At the close, the ACE Market listed's share price jumped 8.5 sen to 35 sen with 138.87 million shares done. Its warrants rose seven sen to 27.5 sen with 108.74 million units traded.

The counters bucked the weaker broader market where the FBM KLCI was down 8.68 points or 0.46% to 1,862.31. Turnover was 3.0 billion shares valued at RM1.98bil. Declining stocks beat advancers 637 to 276 gainers and 261 counters unchanged.

Bursa Securities had queried IFCA MSC whether there was any corporate development relating to the group's business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion.

It also questioned the company whether there was any rumour or report concerning the business and affairs of the group that may account for the trading activity.

Maybank Investment Bank Research (Maybank IB Research), had in a research note issued early Monday that IFCA  is the biggest beneficiary of the GST implementation.

"IFCA is a business software solution company specialising in the property industry. It has a monopoly-like business model with 70% market share in the Malaysian property software industry," said the research house.

Maybank Research said the company chalked up higher sales contracts in 1H14 of RM42.10mil at its Malaysia operation alone (2013: RM38.90mil) on upgrades in IT systems by the developers. As only 10% of its existing clients have upgraded/are upgrading their software for GST implementation, we see enormous potential for IFCA," it said.