• The KLCI bounced higher last week closing at 1,803.76, up 4.59 points versus the prior week in another short trading week.

• The positive sentiment returned on Friday, following a weak Wednesday with foreign net buy of RM2.6m.

• Overall, week 37 saw a net foreign buying of RM2.6m, while local institutions were net buy of RM20.8m. In the previous week, the corresponding figures were at -RM663m and RM629m respectively.

Foreign selling tapered off

Key highlight for the week is the net buy of RM2.6m by foreign investors, which recovered strongly from a net sell position of RM663.4m in week 36. The market’s positive action on Thursday and Friday resulted in a reversal of total net foreign flow from Wednesday. The ringgit was relatively stable at RM4.14 to USD, which tracked a firmer Brent crude oil prices during the week. To-date foreign selling of Malaysian equities is RM9.3bn.

On the external front, emerging markets were calmer during the latter part of the week, with Turkey’s rate increase to 24% the main focus. The US markets closed high following hopes of new round of trade talks picked up.

Week 38 outlook

China equities continued to be sold down, falling to a 4- year low on Monday. This has resulted in weakness in several Asian stock markets. Malaysian equities may still be affected by US-China trade concerns, which could still impact equity fund flows.

Source: BIMB Securities Research - 18 Sept 2018