KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
Foreign investors are exiting Indonesian stocks for the 15th straight session, marking an equity outflow of US$891 million (RM3.96 billion) so far in November, according to Bloomberg data. This has pushed the nation’s benchmark equity index to the brink of a correction, dropping 9% from its record high on Sept 19.
The retreat is fueled by a stronger US dollar and higher treasury yields, triggered by expectations that President-elect Donald Trump’s policies will heighten US inflation and limit Federal Reserve rate cuts. The rupiah has weakened 1% this month, while foreign investors have also sold US$810 million worth of Indonesian government bonds, poised for their first monthly outflow since April.
“What was initially a major tailwind for ASEAN, such as a weaker dollar and lower rates before the US election, has turned into a headwind,” said Niklas Olausson, head of research at Valverde Investment Partners Pte.
Indonesia’s macro environment lacks fresh catalysts, Olausson noted, and the new government requires time to implement policies to attract investors back. Until then, foreign investors are likely to continue adjusting their portfolios, deepening the challenge for emerging markets.
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