PETALING JAYA: Every cloud has a silver lining. In this case, the recent massive selldown in the local stock market may serve as an opportune time for investors to buy on the dip especially given that several artificial intelligence (AI)-related and data centre stocks have surged in recent weeks.
Apex Securities head of research Kenneth Leong believes that the recent market correction may present a bargain hunting opportunity for a longer term investment horizon perspective.
“Valuations are turning slightly attractive with the FBM KLCI trading at price earnings multiple of 14.8 times which is below the long-term historical mean average of 17 times.
“While AI-related and data centre companies share prices have tumbled in recent days, we think that fundamentals remain intact which provides an opportunity to nibble onto beaten down stocks,” he told StarBiz.
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