Foreign participation on Bursa Malaysia tops 50%
Malaysia’s stock market Bursa Malaysia has enjoyed a sharp rise in foreign investment lately. This week, foreign participation topped 50% from May’s average of 30%. Foreign funds snapped up RM10.3 billion (US$3.4 billion) of local stocks as the market dipped and other ‘established’ emerging markest lost their appeal. The trend seems to be continuing into June.
Local funds were net sellers of RM1.3 billion ($432 million) in Malaysian stocks in May, while foreign funds were net RM1.6 billion ($532 million) buyers of Malaysian equities. The FTSE Bursa Malaysia Kuala Lumpur Composite Index was up by 24 points at the end of the month.
The UK’s Financial Times suggested investors were tiring of the more popular ‘BRICs’ emerging markets after news of sluggish growth, inflation and poor corporate governance. Foreign funds were adjusting their portfolios with a perception that Malaysia could handle inflation, and there were growth opportunities in oil and gas, property, plantations and renewable energy.
source & article: Business Times
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