The upward trend continues during the tugging process. Performance tide determines the August trend of the Malaysian stock market.
Written by: @Jungle lee
At the end of July, the Malaysian stock market was mainly shrouded in selling pressure and could not break through the 1638 point level. It only hovered between regions. However, market participants believe that July is still in an upward trend...
Looking back at the performance in July, the FTSE Bursa Malaysia KLCI Index... $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$From the low point of 1590 points in late June, it returned to the level of 1600 points, and at one point even reached 1638.29 points.
However, subsequent events such as the shooting of US presidential candidate Trump, his comments on increasing tariffs on China, and the global system meltdown affected investment sentiment, leading to arbitrage selling. Fortunately, it still stayed at the key level of 1610 points.
Asian stocks were not immune either, and were also influenced by external factors in trading sentiment. The performance in July varied, with the Straits Times Index in Singapore experiencing the largest fluctuations, while the Taiwan Weighted Index experienced the deepest decline.
Regarding the performance of the Malaysian stock market in July, Mr. Wong Theam Ming, CEO of Areca Capital, stated in an interview with Nan Yang Business Daily that investors have chosen to exit for arbitrage to avoid risks due to the fluctuating trend. He mentioned that this is a common strategy as any market movement triggers investors' sensitivity, so taking an arbitrage position is normal. However, overall, the composite index is still on an upward trend, which is considered a positive development. "There are still certain investment themes that are driving the market, so when there are large sell-offs, investors who believe that the valuation is at a low level will seize the opportunity to enter, which results in a fluctuating but generally upward trend."Senior stockbroker Lu Wen Hao also stated that it is normal to see a certain arbitrage wave in July. However, as the Malaysian Ringgit began to strengthen against the US Dollar, it is believed that more foreign capital will flow into the Malaysian stock market, boosting its performance.Mr. Wong Theam Ming, CEO of Areca Capital, mentioned in an interview with Nan Yang Business Daily that investors have chosen to exit for arbitrage to avoid risks due to the fluctuating trend. He stated that any market movement triggers investors' sensitivity, so taking an arbitrage position is normal. However, overall, the composite index is still on an upward trend, which is considered a positive development.
"There are still certain investment themes that are driving the market, so when there are large sell-offs, investors who believe that the valuation is at a low level will seize the opportunity to enter, resulting in a fluctuating but generally upward trend."
Regarding the performance of the Malaysian stock market in July, Mr. Wong Theam Ming, CEO of Areca Capital, stated in an interview with Nan Yang Business Daily that investors have chosen to exit for arbitrage to avoid risks due to the fluctuating trend. He mentioned that this is a common strategy as any market movement triggers investors' sensitivity, so taking an arbitrage position is normal. However, overall, the composite index is still on an upward trend, which is considered a positive development. "There are still certain investment themes that are driving the market, so when there are large sell-offs, investors who believe that the valuation is at a low level will seize the opportunity to enter, which results in a fluctuating but generally upward trend."
Mr. Wong Theam Ming, CEO of Areca Capital, mentioned in an interview with Nan Yang Business Daily that the pullback in the Malaysian stock market is healthy. Therefore, if there is any major adjustment, investors can consider it as a good opportunity to enter.
Regarding the performance of the Malaysian stock market in July, Mr. Wong Theam Ming, CEO of Areca Capital, stated in an interview with Nan Yang Business Daily that the pullback in the Malaysian stock market is healthy. Therefore, if there is any major adjustment, investors can consider it as a good opportunity to enter.
Senior stockbroker Lu Wen Hao also stated that it is normal to see a certain arbitrage wave in July. However, as the Malaysian Ringgit began to strengthen against the US Dollar, it is believed that more foreign capital will flow into the Malaysian stock market, boosting its performance.
In addition, the Malaysian stock market is still at a relatively low level at present, so there is more room for the Malaysian stock market to rise optimistically, and the influx of foreign capital can certainly be a fuel for the rise.
In general, Lu Wenhao believes that the resistance level of the composite index next month is 1638 points; the support level is between 1581 points.
Need to prove that the momentum is still there.
Looking forward to the performance in August, Huang Deming said that with the release of more performance results in late July and August, he believes that the wave of performance will drive the trend in August.
He said that overall, the company's performance will be good, so the performance of the second quarter tends to prove it, and the growth momentum in specific areas continues.
He pointed out that the recent Malaysian exchange $BURSA (1818.MY)$Looking at the net profit of the first half of the fiscal year, which increased by more than 17% year-on-year to 0.15548 billion ringgit, it not only highlights the rising investment sentiment, but also the market is optimistic that major companies will perform well, so they are deploying ahead of time.
Will there be surprises in the banks and construction industry?
Of course, not all sectors will perform well. He pointed out that in specific sectors, such as banks, industries, and construction, the performance will be more outstanding.
Lu Wen-hao then stated that the performance of technology stocks may be dim, which can be seen from the examples of UniSond and VWTech. $UNISEM (5005.MY)$Wei Tech and VWTech $VITROX (0097.MY)$Li said.
“Whether it has already bottomed out and rebounded, it is really hard to say. But from the guidance given by the company, it is indeed not very optimistic. Personally, I believe that the technology sector will see improvements in the third quarter.”
Datacenter concept continues to dominate
Regarding the stocks to focus on in August, he said that investors can continue to pay attention to datacenter concept stocks, and with the approaching 2025 fiscal budget, it may promote more infrastructure construction.
He said that whether the Longxin High-Speed Rail project is successful will be one of the key factors, and of course, the economic special zone will also be one of the major points to watch.
Wong Tak Ming expressed that with the recovery of exports, it is expected to drive the strength of the semiconductor and technology sectors, so investors can focus on export-related stocks.
He also agreed that investors can focus on datacenter concept stocks, and any government reform measures, if feasible, are believed to attract foreign investment to Malaysia.
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Source: Nanyang Siang Pau
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