KUALA LUMPUR (March 23): Software service players saw a boost in morning trade as Chinese online business magnate Jack Ma declared Malaysia as Alibaba Group Holding Ltd’s first overseas e-commerce hub.
The counters, mostly penny stocks, received a much-needed shake-up which saw them dominating the top active segment of the exchange.
At 11.52am, most active counter Efficient E-Solutions Bhd that is involved in data solutions and electronic bill services, surged 22 sen or 75.86% to 51 sen, after paring gains, with 150.8 million shares transacted for a market capitalisation of RM205.6 million.
Cuscapi Bhd, a software and support service provider, gained nine sen or 37.5% at 33 sen, with 66.9 million shares exchanged, valuing it at RM135 million.
Dataprep Holdings Bhd — which supports, develops and maintains computer equipment, systems and software — grew 6.5 sen or 10.48% to 68.5 sen, with 124.4 million shares done, valuing it at RM290.76 million.
Systech Bhd, multi-level marketing and direct selling software developer, went up five sen or 19.6% to 30.5 sen, with 31.5 million shares done for a market capitalisation of RM88.5 million.
Managepay Systems Bhd, a payment service provider, went up one sen or 3.7% to 28 sen, with 70 million shares exchanging hands for a market capitalisation of RM191.8 million.
MNC Wireless Bhd, mobile technology solution developer and mobile service portal content provider, increased half sen or 8.33% to 6.5 sen, with 33.9 million shares transacted, giving it a market capitalisation of RM6.1 million.
A remisier with a local bank told theedgemarkets.com that the uptrend was probably rotational penny stock play.
"Perhaps the market also believes that the counters would benefit from the e-trade zone and Ali Baba setting up its regional hub here," he added.
Yesterday, Ma who spoke at the opening of the Digital Free Trade Zone (DTFZ), said the first e-hub under the Electronic World Trade Platform (eWTP) outside of China would go a long way towards making global trade more inclusive and provide support to the small and medium enterprises (SMEs) and the younger generation.
The goal of the eWTP initiative is to build a more inclusive, free and innovative global trading platform for SMEs, young people and consumers.
Alibaba’s facility will be part of the DFTZ, and is expected to be launched at the end of 2019.
Alibaba said the zone would function as a centralised customs clearance, warehousing and fulfilment facility for Malaysia and the region, to deliver faster clearance for imports and exports.
http://www.theedgemarkets.com/en/article/penny-stock-software-counters-spike-after-alibabas-overseas-e-commerce-malaysian-hub
