Foreign Buying Returns; Focus Turns to Select Opportunities

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The FBM KLCI resumed its upward momentum on Thursday, climbing back above the 1,720 level after a brief pullback in the previous session, supported by renewed foreign interest in domestic equities.

Foreign Buying

While buying activity improved, overall market participation remained relatively subdued, suggesting investors are still adopting a cautious approach amid mixed global market conditions and ahead of key economic data releases.

The benchmark index is expected to trade within a narrow range of between 1,715 and 1,730 in the near term as investors assess fresh catalysts and earnings prospects.

Technical Focus: IOI Properties

IOI Properties Group Bhd (IOIPG) is showing early signs of a trend reversal after rebounding from its key support level of RM3.72.

The stock is trading within an accumulation zone of RM3.83 to RM3.94, with immediate resistance seen at RM3.94 and a stronger upside target at RM4.45.

On the downside, support levels are identified at RM3.83 and RM3.58, which should provide near-term price stability if market sentiment remains constructive.

Investment Idea: Stratus Global Holdings

Newly listed Stratus Global Holdings Bhd has emerged as a compelling growth story within Malaysia’s technology sector.

The company specialises in factory automation solutions, particularly cleanroom automated material handling systems (AMHS), serving the semiconductor industry.

Analysts project core net profit of RM69.7 million for FY2027 and RM84.8 million for FY2028, supported by growing demand from artificial intelligence-related semiconductor investments.

A fair value of RM1.56 has been assigned to the stock based on 28 times FY2027 earnings.

The investment case is underpinned by its software-integrated product suite, healthy profit margins, debt-free balance sheet and direct exposure to rising global semiconductor capital expenditure linked to AI-driven manufacturing expansion.

With foreign investors returning selectively to Bursa Malaysia and domestic fundamentals remaining supportive, investors are likely to continue favouring quality growth and fundamentally strong counters.

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