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Free Malaysia Today
29-05-2025
- Business
- Free Malaysia Today
Bursa bucks regional trend to close lower amid lack of fresh local leads
KUALA LUMPUR : Bursa Malaysia bucked the regional trend to settle lower today, as selling pressure in selected banking heavyweights dampened sentiment in the absence of fresh domestic catalysts, coupled with an unexciting batch of corporate earnings releases, said an analyst. Apex Securities Bhd head of research Kenneth Leong expects that the key index may attempt to find stability above the 1,500 level on the back of potential bargain hunting, going forward. 'Still, we believe that any potential gains could be capped by the resumption of foreign funds outflow. 'Looking ahead, investors will be keeping a close watch on the second reading of the US first-quarter 2025 gross domestic product data to be released later tonight,' he told Bernama. Domestically, Leong said the key focus remains on the ongoing corporate earnings releases. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Sedek Jantan said the release of the latest US Federal Reserve (Fed) minutes proved pivotal. 'The Fed's reaffirmation of its cautious stance – highlighting persistent inflationary pressures and resilient US macroeconomic data – has effectively tempered market expectations for a near-term rate cut. 'This recalibration in rate outlook translated into upward pressure on global yields, a dynamic to which Malaysia's banking-heavy benchmark index remains acutely sensitive,' he told Bernama. Sedek said the uplift in regional equities was underpinned by a US federal court's decision to block president Donald Trump's proposed 'Liberation Day' tariffs, which materially improved global risk appetite. However, domestic sentiment remained subdued, weighed down by profit-taking in heavyweight banking counters. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 4.50 points, or 0.29%, to 1,518.98 from yesterday's close of 1,523.48. The benchmark index opened 2.12 points higher at 1,525.60 and fluctuated between 1,518.38 and 1,526.94 throughout the day. In the broader market, decliners beat gainers 478 to 466, while 460 counters were unchanged, 982 untraded and 110 suspended. Turnover expanded to 3.30 billion units worth RM2.22 billion compared with yesterday's 2.50 billion units worth RM2.03 billion. Among heavyweights, Maybank gained 3 sen to RM9.87 and CIMB increased 1 sen to RM6.88. Public Bank and Tenaga Nasional fell 2 sen each to RM4.31 and RM14.08 respectively, while IHH Healthcare was flat at RM6.91. As for active stocks, Permaju inched down 0.5 sen to 1 sen and NationGate dropped 14 sen to RM1.44, while Velesto and NexG added 1 sen each to 18.5 sen and 37.5 sen respectively. MyEG was flat at 89 sen. On the index board, the FBM Emas Index slid 14.84 points to 11,382.33, the FBM ACE Index rose 42.82 points to 4,592.16, but the FBMT 100 Index fell 19.34 points to 11,142.02. The FBM Emas Shariah Index lost 9.68 points to 11,365.83 while the FBM 70 Index perked up 25.65 points to 16,332.31. By sector, the financial services index slipped 64.33 points to 17,893.57, the industrial products and services index edged up 0.32 of-a-point to 153.02, the energy index put on 1.67 points to 708.18, while the plantation index added 1.40 points to 7,293.95. The Main Market volume improved to 1.56 billion units valued at RM1.93 billion against yesterday's 1.34 billion units valued at RM1.80 billion. Warrants turnover swelled to 1.37 billion units worth RM164.04 million from 815.91 million units worth RM113.60 million previously. The ACE Market volume advanced to 364.60 million shares worth RM120.88 million from 346.43 million shares worth RM119.44 million yesterday. Consumer products and services counters accounted for 354.51 million shares traded on the Main Market, industrial products and services (317.02 million), construction (98.30 million), technology (235.43 million), SPAC (nil), financial services (70.33 million), property (170.33 million), plantation (14.93 million), REITs (88.90 million), closed/fund (2,700), energy (150.03 million), healthcare (36.24 million), telecommunications and media (56.54 million), transportation and logistics (15.65 million), utilities (34.86 million), and business trusts (23,400).
Yahoo
25-05-2025
- Business
- Yahoo
Why the S&P 500's record highs could continue in 2025
The S&P 500 is once again approaching record territory, driven by strong corporate earnings, easing inflation, and the ongoing boom in artificial intelligence (AI). As of mid-May 2025, the index sits just 3% below its all-time high of 6,144.15, set in February. This resurgence has led analysts to revise their forecasts, with UBS recently raising its year-end target to 6,000, citing stronger-than-expected earnings and improved GDP growth projections. A marked increase in corporate earnings is the most significant driver of the market's recovery. In the first quarter of 2025, S&P 500 companies reported a blended year-over-year earnings growth rate of 13.6%, surpassing the five-year average of 11.3%. This marks the second consecutive quarter of double-digit earnings growth. Notably, sectors such as Health Care, Communication Services, and Information Technology led the charge, with the Health Care sector reporting a remarkable 43% increase. Looking ahead, analysts anticipate this trend to continue, with projections of a 14% year-over-year increase for 2025. And the optimism is not unwarranted — there's strong evidence of sustained economic expansion from productivity-boosting technological developments like automation. The AI phenomenon continues to play a significant role in US market activity. Companies like AI-chip makers Nvidia and Broadcom remain at the forefront, with their performance closely watched by investors. Naturally, the 'Magnificent Seven' — tech giants including Apple, Microsoft, and Alphabet — have been core drivers of the S&P 500's gains. It's now clearer than ever that investor confidence in the sector has not waned. AI-enhanced automation will likely continue to be integrated across various industries, leading to enhanced efficiency and new revenue streams. The resultant boost in corporate earnings could, by extension, help drive even greater market growth. The AI-driven analytics firm Palantir (NASDAQ: PLTR) is a good example of an S&P 500 stock worth considering in 2025. It's up a massive 65% since the beginning of April, after bouncing off a yearly low of $74. It made a new record high on 14 May and is currently the second-best performing stock on the S&P 500, slightly behind Texas energy firm NRG. Known for its advanced data analytics and AI platforms, the company is capitalising on surging demand from both government and commercial clients seeking to integrate artificial intelligence into decision-making. In Q1 2025, it posted its sixth consecutive quarter of GAAP profitability and a 21% year-over-year revenue increase, driven largely by its popular Foundry platform. The company is also aggressively expanding through higher-value contracts and pushing for more international adoption. But, as is common for tech giants, it trades at a notable premium — around 55 times forward earnings. This high valuation leaves little room for error — any earnings miss or slowdown in growth could trigger a sharp correction. Another concern is concentration risk: most of Palantir's revenue comes from a small number of large government contracts, particularly with US defence and intelligence agencies. Delays or cancellations in these contracts could hurt its revenue and share price. But this doesn't appear to have swayed investor enthusiasm, likely because of its strategic position at the intersection of AI, defence, and enterprise software. The company's success is a good example of how the AI narrative extends far beyond semiconductor stocks like Nvidia. The post Why the S&P 500's record highs could continue in 2025 appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet, Apple, Microsoft, and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
2 "Magnificent Seven" Stocks That Are Screaming Buys Today
Magnificent Seven stocks led gains in the S&P 500 last year and might have seemed too expensive for some investors. But recent declines, spurred by concerns about the economic situation ahead, have led to bargain prices on some of this group's top members. By the end of last year, "Magnificent Seven" stocks may have seemed out of reach for many investors. These top technology players saw their shares surge -- and they even led gains in the S&P 500 index -- on optimism about the ability of artificial intelligence (AI) to revolutionize business and our daily lives. The Magnificent Seven players have been aggressively investing in AI, and many of them are leaders in the field, generating billions of dollars in revenue from the technology. But in recent weeks, these leading tech companies have seen their shares decline amid concerns about spending in a potentially difficult economy. President Donald Trump announced a plan for tariffs on imports -- and the concern is that will lead to higher prices on a wide variety of goods and eventually that situation will weigh on the consumer's wallet and corporate earnings. This is a near-term risk, but it's important to remember that many well-established companies have what it takes to manage headwinds and grow over the long term. That's why now is the perfect time to go bargaining hunting, picking out quality stocks trading at low valuations after these recent declines. With that in mind, here are two Magnificent Seven stocks that are screaming buys right now. I might surprise you when I say one of the best deals around right now isn't necessarily on a small high-risk AI player but instead on the world's top AI company -- one that's proven itself to be key to the industry's development. I'm talking about Nvidia (NASDAQ: NVDA), the leading maker of AI chips and a company that's generated record earnings quarter after quarter thanks to this market position. Yes, recent stock market declines even hurt Nvidia, dragging it lower so that it now trades at 25x forward earnings estimates -- that's down from about 50x earlier this year. Investors worried that any economic weakness could weigh on the spending plans of Nvidia's customers, but so far, that hasn't happened. In recent earnings reports, top customers such as Microsoft have reiterated their focus on investing in AI. This bodes well for Nvidia's upcoming earnings report and the ones to follow. Meanwhile, Nvidia's innovation -- including a pledge to update its chips on an annual basis -- should keep it ahead of rivals. Today's tech giants are keen on using the very latest AI tools to supercharge their platforms, and that keeps them coming back to Nvidia. Finally, it's important to note that Nvidia's financial strength, with $43 billion in cash and a high level of profitability on sales -- gross margin has consistently surpassed 70% -- position it well to handle any potential headwinds and win over the long term. That's why, at today's price, it's a screaming buy. Want to get in on the very cheapest Magnificent Seven stock right now? That's a great idea considering the overall strength of this company in two key markets. This player is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), global leader in the Internet search market through its Google Search platform -- it holds about 90% market share. And Alphabet, through Google Cloud, also is one of the world's top cloud computing companies. These two businesses are helping Alphabet generate billions of dollars in quarterly revenue -- and Alphabet's investment in AI has already started supercharging earnings potential. For example, demand for AI infrastructure and generative AI helped Google Cloud report a 28% increase in revenue in the most recent quarter. Alphabet is winning in AI by offering AI to customers through Google Cloud, and the company also is winning as it uses AI to improve its business. An example here is the company's development of large language model, Gemini, and how it's applied this tool to improve Google Search. In recent quarters, Alphabet has said its use of AI in Google Search has resulted in people relying on Google Search more and more. This is important because Alphabet makes most of its revenue through advertising across the Google platform -- and if people spend more time on Google, advertisers are more likely to keep spending here to reach that audience and even boost spending. All of this makes Alphabet, trading at only 17x forward earnings estimates, look like a buying opportunity you won't want to miss out on right now. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $303,566!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $37,207!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $623,103!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 5, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 "Magnificent Seven" Stocks That Are Screaming Buys Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Middle East Hidden Opportunities Featuring Three Promising Stocks
As most Gulf markets have recently eased due to mixed corporate earnings and global economic factors such as U.S.-China trade talks and Federal Reserve policy decisions, the spotlight is on how these dynamics influence investment opportunities in the region. In this environment, identifying promising stocks often involves looking for companies with strong fundamentals that can navigate broader market uncertainties and capitalize on regional growth potential. Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East Name Debt To Equity Revenue Growth Earnings Growth Health Rating Alf Meem Yaa for Medical Supplies and Equipment NA 17.03% 18.37% ★★★★★★ Nofoth Food Products NA 14.41% 31.88% ★★★★★★ MOBI Industry 6.50% 5.60% 24.00% ★★★★★★ Sure Global Tech NA 11.95% 18.65% ★★★★★★ Saudi Azm for Communication and Information Technology 2.07% 16.18% 21.11% ★★★★★★ National General Insurance (P.J.S.C.) NA 13.40% 30.21% ★★★★★☆ Union Coop 3.73% -4.15% -13.19% ★★★★★☆ National Corporation for Tourism and Hotels 19.25% 0.67% 4.89% ★★★★☆☆ Saudi Chemical Holding 73.23% 15.66% 44.81% ★★★★☆☆ Waja 23.81% 98.44% 14.54% ★★★★☆☆ Click here to see the full list of 243 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener. Let's uncover some gems from our specialized screener. Simply Wall St Value Rating: ★★★★★★ Overview: Europen Endustri Insaat Sanayi ve Ticaret A.S. operates in the manufacturing sector, focusing on the production of glass, PVC profiles, and door and window systems, with a market capitalization of TRY12.45 billion. Operations: Europen Endustri generates revenue primarily from its door and window systems, contributing TRY2.38 billion, followed by glass at TRY2.09 billion and PVC profiles at TRY449.18 million. The company's net profit margin stands out as a key financial metric to consider in evaluating its profitability trends over time. Europen Endustri Insaat Sanayi ve Ticaret, a nimble player in its sector, has shown impressive earnings growth of 43.5% annually over the last five years. Despite a recent dip in sales from TRY 5.75 billion to TRY 5.24 billion, net income rose to TRY 1.07 billion from TRY 918 million, indicating robust profitability with high-quality past earnings. The company's net debt to equity ratio stands at a satisfactory 0.4%, and it is trading at nearly 15% below estimated fair value, suggesting potential for upside as it navigates market volatility with strong financial health and solid cash flow generation capabilities.
CBS News
07-05-2025
- Business
- CBS News
Fed holds interest rates steady as the central bank weighs impact of Trump tariffs
When will the Fed be likely to lower rates? When will the Fed be likely to lower rates? The Federal Reserve said Wednesday it is leaving its benchmark interest rate unchanged, resisting pressure from President Trump to lower U.S. borrowing costs as policy makers assess the economic impact of his trade policies. By the numbers The Fed said it will maintain the federal funds rate at its current range of 4.25% to 4.5%, where it's been parked since the central bank last moved to lower short-term rates in December. The federal funds rate — the rate banks charge each other for short-term loans — helps determine what businesses and consumers pay in interest on loans and credit card debt. What the Fed decision means The Fed's to hold interest rates steady comes amid pressure from Mr. Trump to cut interest rates, with the president writing on social media last month that the central bank has been "TOO LATE AND WRONG" for holding off on further reductions. Economists are forecasting that Mr. Trump's tariffs will boost inflation later this year. That could provide the Fed with the impetus to cut rates, although inflation cooled in March. Given more subdued inflation and a buoyant job market, most economists had projected that the Fed would maintain interest rates at today's meeting, despite some headwinds such as eroding consumer confidence and a sharp decline in first-quarter U.S. economic growth. "The reality is that corporate earnings have been pretty strong, the U.S. economy barreling along and the biggest cause for concern is sentiment," Scott Helfstein, head of investment strategy at investment firm Global X, said in an email before the latest Fed meeting. He added, "There isn't a good reason to change rates at this point, and the Fed is likely to reiterate the need for more data with three rate cuts priced in for 2025, at this point starting in the summer." —This is a breaking news story and will be updated.
