KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Earnings Beat Propels Historic Milestone
Microsoft ($MSFT) became only the second company in history to cross the $4 trillion market capitalization mark, after reporting quarterly results that topped Wall Street expectations. Shares rose 8.2%, driven by robust cloud and AI demand.
Azure Delivers 39% YoY Growth
Azure revenue surged 39% YoY, outperforming the consensus estimate of 34%. Management guided for 37% growth in the upcoming quarter, signaling sustained momentum in enterprise cloud adoption.
Aggressive AI CapEx Supports Long-Term Outlook
Microsoft announced fiscal Q1 capital expenditures exceeding $30 billion, primarily to scale AI infrastructure. Full-year revenue growth is forecast in the double digits, reinforcing its position as a leading AI ecosystem provider.
Valuation Snapshot
P/E (NTM): ~35x vs. 5-year average of 32x
EV/EBITDA (NTM): ~26x vs. peer median of 22x
Free Cash Flow Yield: ~2.5%
MSFT vs. Peers:
Nvidia: P/E ~40x; EV/EBITDA ~30x; growth more AI-centric
Amazon: P/E ~38x; AWS growth lagging Azure at 17.5% YoY
Apple: P/E ~29x; slower revenue trajectory outside China
Market Performance
YTD Gain: +50% since April trough
Analyst Ratings: 94% Buy, 5% Hold, 1% Sell
12-Month Target Median: $560/share (~5% upside from current levels)
Investment View
We maintain a constructive outlook on MSFT. Its diversified revenue base, Azure outperformance, and multi-year AI infrastructure buildout underpin continued earnings visibility. While valuation has re-rated above historical averages, we believe premium multiples are justified given the company’s dominant positioning in enterprise AI and cloud.
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