KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Oracle Corp's shares reached a record high after the company reported strong fiscal first-quarter results, driven by a 21% increase in cloud revenue to $5.6 billion, in line with estimates. The performance signals continued robust demand for Oracle's cloud computing services, particularly for artificial intelligence (AI) workloads.
Key Takeaways:
Better-Than-Expected Earnings and Revenue: Oracle reported earnings of $1.39 per share, exceeding the estimated $1.33, with revenue rising 7% to $13.3 billion, meeting expectations. CEO Safra Catz noted that the growth of Oracle's cloud services has accelerated both operating income and earnings per share.
Focus on Cloud Infrastructure and AI: Oracle is expanding its cloud infrastructure business to compete with major players like Amazon, Microsoft, and Google. The company has gained traction with generative AI workloads, boasting customers such as Reka and Elon Musk’s xAI. Additionally, Oracle announced a new agreement to make its database available on Amazon Web Services (AWS), complementing similar deals with Microsoft and Google.
Strong Cloud Revenue and Booked Sales: The company’s cloud revenue, driven by demand for computing power and storage, reached $5.6 billion, with $2.2 billion from infrastructure services. Oracle reported a remaining performance obligation of $99 billion, reflecting a substantial volume of booked sales.
Positive Market Reaction and Growth Outlook: Oracle shares jumped as much as 15% on Tuesday, hitting a record intraday high of $160.52. The company is one of the best-performing large software stocks this year, up 33% through Monday. Catz projected double-digit revenue growth for the fiscal year ending in May, surpassing analysts' estimates of a 9.4% increase.
Expansion Plans and Capital Expenditure: Oracle is rapidly building new data centers to meet the growing demand for AI-powered servers. Capital expenditures for the quarter were $2.3 billion, below the estimated $3.04 billion. However, Oracle plans to double its capital expenditures in the fiscal year ending in May 2025 compared to 2024, highlighting its commitment to expanding cloud infrastructure.
The strong quarterly performance and growth strategy have reinforced Oracle's position in the competitive cloud market, driving its shares to record highs and indicating sustained momentum in its cloud business.
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