KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Hangzhou Arcvideo Technology Co., Ltd. (SHSE:688039) shares have soared 34% in the past month , bringing the stock’s annual gain to an impressive 96% . Valuation in Focus: The company’s price-to-sales (P/S) ratio stands at 16.4x , more than double the median of China’s software industry (~7.7x). Such a high valuation raises questions, especially as revenue fell 14% last year and is down 31% over the past three years . Why Investors Are Paying Up: Despite recent revenue declines, analysts expect a sharp turnaround, forecasting 62% revenue growth over the next year , compared to the industry’s projected 24% . This anticipated rebound appears to justify the premium P/S multiple. Investor Sentiment: The recent rally suggests investors are betting on a revenue recovery and are willing to hold despite the company’s historical declines. With expectations running high, any miss in growth could put pressure on the stock. Summary: ...