Stock With Momentum: Carlsberg Brewery Malaysia

Carlsberg Brewery Malaysia Bhd (+ve)
TRADING of shares in Carlsberg Brewery Malaysia Bhd (fundamental: 1.55/3, valuation: 1.7/3), which closed RM2.26 or 6.77% higher at its all-time high of RM35.66 yesterday, triggered our momentum algorithm for the second time this year.

The share-price gain came following reports that the company will be added to MSCI Global Standard Indexes following the February 2020 quarterly index review. Year to date, the stock’s share price has surged 22% from RM29.23 on Dec 31, 2019.

The good news has also sparked trading interest from investors, as the counter topped the gainers list yesterday, with 3.67 million shares done, 25 times than the counter’s 200-day average volume of 146,801 shares.

The company’s net profit grew 6.5% for the third quarter ended Sept 30, 2019 to RM69.18 million from RM64.98 million a year ago on higher sales. Revenue was up 10% to RM542.22 million from RM492.77 million.