Foreign outflow of funds, weaker corporate earnings, and slow economic recovery are key reasons for the FBM KLCI’s laggard showing, says Areca Capital CEO Danny Wong.
The tech-heavy Nasdaq Composite surged 1.3% and the S&P 500 added 1% to reach their best closing levels in over nine months while the Dow gained 0.5% yesterday. However, the FTSE Bursa Malaysia KLCI bucked the regional trend by closing 0.13% or 1.75 points lower at 1381.26 today. This does not really surprise savvy investors.An analyst remarked the benchmark index was impacted more by domestic factors rather than the US debt ceiling episode.
Imran suggested that the FBM KLCI may be underperforming due to the strong selling pressure on banking stocks, which weighs heavily on the benchmark index, but not on other indices. Instead, he highlighted local issues, such as foreign outflow of funds, weaker reported corporate earnings, and slow economic recovery, as the main contributors to FBM KLCI’s laggard showing.
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Source: staronline - 🏆 4. / 75 Read more »