(Kuala Lumpur, 24th) In the 2025 fiscal budget, several key measures provide potential growth opportunities for small and medium-sized enterprises, and small cap stocks may see a turning point.
Although the current market sentiment is quite low, after evaluating the budget plan, Galaxy International Securities believes that some investment opportunities related to the budget plan may reappear, and has identified 8 micro investment themes, namely:
1) Upgrading of public transportation and significant allocation to East Malaysia infrastructure;
2) Beneficiaries of renewable energy and solar energy as part of the National Energy Transition Roadmap (NETR).
Continuous introduction of contracts related to machinery, electrical, plumbing (MEP) and datacenter;
Opportunities derived from water conservancy infrastructure and raw water transportation;
Continuous promotion of e-invoicing and cloud accounting;
Expansion of digital measures to mature public transportation systems;
7) Measures to drive demand in the residence industry;
8) The theme of private consumption and higher disposable income.
Galaxy International Securities analysts believe that considering some of the stocks being tracked have become attractive after the price adjustments; coupled with the signals released by the budget, some companies may soon announce bullish news, thereby boosting the optimistic sentiment of cyclical stocks.
Furthermore, individual investors may seize the opportunity to reposition their stocks before the rebound in the market, just before the Spring Festival next year.
"If these positive factors all occur, we believe that the FTSE Small Cap Index may experience a reversal."
Investment strategy: 5 major industries + 8 small and medium-sized stocks
As for the trading strategy, analysts...