"According to Bursa Malaysia's results, average daily trading volume increased 22% in 1Q20 which ultimately led to a 34% increase in its quarterly net profit. Bursa Malaysia earns a fee on trading volume, hence it is an obvious beneficiary of the recent increase in trading volume. However, Bursa Malaysia's share price has performed well, it is now 13% from reaching its 5-year high of RM8.07."
"While 1Q was good in terms of trading volume, 2Q will be better. Total shares traded hit 89bil for the month of March 2019, but in April 2020, that figure was 116bil shares traded - an increase of 30%. Despite the higher number of public holidays, the month of May 2020 will likely exceed April 2020 as we have seen record trading activity take place over the past week."
"However, my chosen proxy to ride on the rising trade volume are the trading platform providers, comprising of EFORCE and N2N. This is because both companies earn a fee on total volume traded on their platforms. As you might be aware, EFORCE is the platform provider for Maybank, among others while N2N provides the platform for CIMB. Besides just the trading fee, the sudden rise in trading volume requires brokerages to invest more in front-end and back-end software and conduct more maintenance."
"While trading volumes are at a 11-year high, only comparable to the month of May 2009, EFORCE and N2N current trade significantly below their 5-year share price highs. EFORCE trades at a 67% while N2N at a 37% discount. This implies a 207% upside to its 5-year share price high (RM1.63) for EFORCE and 58% for N2N (RM1.33). Bear in mind, Bursa Malaysia is only 13% from its 5-year high."
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On top of higher commissions due to recent increases in trading volume, brokerages NEED to invest more in front/back-end software and conduct more maintenance as most platforms have been wonky due to abnormal use.
last week got one guy did video and said this counter is limited growth...but data proved he was wrong...recently the trading volume are increasing, mean the demand for EFORCE's services are growing also. News also reported, more people are opening trading account to trade since last month. This year will be boom boost year for EFORCE. 0.300 last month, now going 0.600 soon.
I am truly dissapointed of what is going in this stocks! I know it is a good stock with alot of dependend business yet when i see the shares doesn't move much and i'm almost on lost with 8% nearly reaching my cutloss soon!
With the QR postponed and losses pluss been holding for 2 weeks. Haizz i don't get anything in return. I think i'm the only person never go and dive into glove. Let's see if i can wait else exit and move to another counter.
Homily trend analysis showed a gradual drop of banker chips to 30% from around 50%. With some last minute selling pressure from retailers due to slight increase of locked chips, coupled with the sudden sharp drop in the KDJ white line below 25 pts, it seemed to suggest that the stock is in oversold territory.
Transaction volume up by 30% in Q1. Bursa revenue up by 20% Q1, N2N Q1 local revenue up by only 5%. The rest of the volume gotta go somewhere. Its either the remaining increased volume go to EForce or to the new force RakutenTrade.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Ravi Kumar
3,649 posts
Posted by Ravi Kumar > 2020-05-15 23:21 | Report Abuse
nice closing today and uptrend intact. Check the chart it is bullish