The FBM KLCI has surged past the 1,650 mark, buoyed by continuous foreign fund inflows amounting to RM1.4 billion over the past week.
“We anticipate that the accumulation of blue-chip stocks will continue, although broader market sentiment may remain somewhat subdued due to limited retail participation,” says Rakuten.
Influx of IPOs
The recent influx of IPOs, which raised over RM2 billion in the first half of 2024, could be contributing to the lower interest in small-cap stocks.
“As we move into the earnings season for 3Q2024, we expect the index to fluctuate within the 1,645-1,655 range today.”
Investment Idea: VTC (0319) (IPO)
Recommendation: BUY
Fair Value: RM0.47
Valuation Basis: 20x FY8/25 EPS
Technical View: ABLEGLOB (7167)
Resistance Levels: RM2.10 (R1), RM2.20 (R2)
Support Levels: RM1.93 (S1), RM1.80 (S2)
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