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Hot Stocks – E-Government service players

Trading Room – 23rd Oct 2018

The fall in the share prices of government e-service players are attracting interest. The government in its 11th Malaysian Plan review has stated that it wants to pursue the “digitalisation” agenda in the remaining period of the plan that ends in 2020 according to news reports. The plans include the expansion of the Government Online Services Gateway and this should be good news for IT companies pursuing government contracts.

However, as it turned out, it was reported that there are lingering concerns that the government may review the concession contracts of g-government service players to cut cost and plug leakages.

These players’ share prices have already been sold down post-elections due to perceived worried over their political links but two of them, MyEg Services and Datasonic Group were hammered down again in the last few days after their names were linked to corruption charges against former deputy prime minister Datuk Seri Ahmad Zahid although the two companies have subsequently come out to rebut the negative news.

Where is the low for the share prices of these companies and are there opportunities to trade them for a rebound play or will be there be further weakness?

With strong volumes and big price movements, their share prices have been hogging the limelight lately and volatility means opportunities for elite traders, especially since they have fallen a lot.

Out of the six e-government players, MyEg Services, Datasonic Group, Dagang NeXchange, Scicom, Iris Corp and Prestariang, there may be good near-term trading opportunities in three of them based on their critical level and other proprietary criteria calculated by our Master Algorithm.

Refer to the full mPower Algorithm report and see potentially how to trade these e-government stocks.