KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Indonesia and Malaysia have become standout performers in Asia this month, attracting significant foreign investment as global investors reduce their exposure to most other markets in the region. In August, through Thursday, overseas funds have purchased $684 million worth of Indonesian stocks and $241 million in Malaysian shares, marking a second consecutive month of inflows for both markets.
Key Takeaways:
Foreign Inflows Despite Regional Sell-Off: While most Asian markets have seen outflows, Indonesia and Malaysia have attracted substantial foreign investment. Indonesia received $684 million, and Malaysia $241 million in foreign equity inflows, contrasting sharply with the $1.8 billion outflow from India, a market that has been a favorite among emerging market investors.
Factors Behind the Inflows: Indonesia's fiscal discipline and robust economic growth are key drivers behind its attractiveness to foreign investors. Malaysia, on the other hand, is benefiting from the global artificial intelligence (AI) boom, having secured billions of dollars in data center investments. These factors have also led to the ringgit and rupiah being top performers against the dollar among 23 emerging market currencies.
Uncertainty Ahead: Despite the strong inflows, there is uncertainty about whether Indonesia and Malaysia can maintain this momentum. The expected rate cuts by the Federal Reserve could enhance the appeal of emerging markets more broadly, potentially redistributing global capital. Additionally, political developments in Indonesia, such as nationwide protests against proposed election law changes, have introduced volatility, as seen with the recent slide in Indonesian stocks and the rupiah.
As investors weigh the potential for further gains in Indonesia and Malaysia against broader regional and global trends, the focus will likely remain on how these markets navigate both domestic challenges and shifting international financial conditions.
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