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南洋商报 NYSP wrote a post · Jul 24 15:10

The data center theme became “Good” for foreign investment

Under government support for data centers, foreign investment is returning to Malaysian stocks
(KUALA LUMPUR, 24th) Malaysia's aggressive development of semiconductor and AI data centers has successfully attracted the return of foreign investment.
According to Bloomberg's internal data, in the past 6 years, foreign capital outflows from Malaysian stocks reached RM11.5 billion, and after Prime Minister Anwar vigorously implemented policies related to semiconductors and AI data centers, foreign capital returned to Malaysian stocks this year.
Malaysia's benchmark stock index rose 12%, topping ASEAN, and initial public offerings (IPOs) also rose sharply. Investors believe that if the Prime Minister can further cut subsidies and reduce the fiscal deficit, it will bring more benefits.
Continued inflows of foreign capital reflect investors' growing confidence in Malaysia, believing that Malaysia has begun to improve after experiencing weak growth and frequent leadership changes.
Ennes Zhou (transliteration), head of ASEAN investment at BNP Paribas (transliteration), said, “We have seen a large number of clear policies to guide the country's development direction.”
“We expect that if a number of policies are put in place, the profit growth of Malaysian companies will begin now.”
According to Bloomberg data, foreign investors bought Malaysian stocks net of RM0.1 billion 72.5 million this year, but the stock markets of neighboring countries Indonesia, Thailand, and the Philippines experienced foreign exodus this year. Investors believe technology and data centers will flourish, and are betting $SUNWAY (5211.MY)$ Sunway and $YTLPOWR (6742.MY)$ Yang Zhongli Electric Power will benefit from the data center.
Since the beginning of the year, Sunway's stock price has nearly doubled, and Yang Zhongli Electric Power has also increased 88%.
The IPO market is improving
In addition to large stocks being favored by foreign investors, the local market is also thriving. The number of IPOs surged this year. A total of 27 companies raised a total of 0.723 billion US dollars, an increase of 43% over the same period last year.
At the same time, many advantages have allowed analysts to improve their predictions for the composite index. J.P. Morgan Chase raised the market rating from “reduced holdings” to “neutral” this month. CIMC Securities expects profit growth of blue-chip stocks to reach 11% in 2024 and 8% in 2025. Compared with last year's profit growth of only 5%.
Zhang Guolin, founder and chief investment director of Xin Capital, believes that the export-oriented industry can increase revenue per share by 25% within the next year or two.
Source: Nanyang Siang Pao
Disclaimer: This content is for informational and educational purposes only, and does not constitute any specific investment, investment strategy, or recommendation endorsement. The reader shall bear any risk and responsibility arising from reliance on this content. Always conduct your own independent research and evaluation and consult professional advice if necessary before making any investment decisions. The author and related participants are not responsible for any loss or damage resulting from the use or reliance on the information contained in this article.
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南洋商报 NYSP
Nanyang Siang Pau Official Account
《南洋商报》创立于1923年，是马来西亚历史最悠久的中文报纸之一。以财经及商业新闻为主，是商家与投资者必备的新闻资讯平台。
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