Foreign funds net sellers at RM351.6 million

KUALA LUMPUR: Foreign funds were net sellers at RM351.6 million between Nov 11-14, up from RM44.1 million recorded between Nov 4-7.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said this indicates foreign investors were taking a cautious stand on Malaysian equities.

“Issues surrounding the trade discussions between the US and China continued to take centre stage as the progress remained highly fluid,” he told Bernama today.

“The latest release on Malaysia’s third quarter of 2019 (3Q2019) gross domestic product indicates that the impact from the global slowdown following the ongoing trade war since last year has taken a toll on the country’s external demand,” said Mohd Afzanizam.

He attributed the lower growth of 4.4 per cent in 3Q2019 from 4.9 per cent in the previous quarter to external uncertainties which contributed to weak business and consumer sentiment domestically.

Apart from that, he said consumer spending, which continued to be the main pillar of domestic growth, had normalised.

Going forward, he said developments behind the trade war between the US and China will remain the main focus for the equities market.

Meanwhile, Mohd Afzanizam said companies’ earnings announcements for 3Q2019 should gain further momentum.

The Bursa Malaysia’s FBM KLCI settled below 1,600 points this week.

“All in all, it’s going to be a tight range for the FBM KLCI next week,” he said. — BERNAMA

Source: NST