Monday, 14 Sep 2020 10:33 AM MYT
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim attributed the better fund-flow to improved investors’ confidence over Malaysia’s equity market in light of certainty in the country’s political environment. The level of foreign net selling dropped to RM11.5 million on Tuesday despite US President Donald Trump raising the prospect of a decoupling of the country’s economy from mainland China.
“Nevertheless, local institutional funds took out RM249.2 million net of local equities on Wednesday amid concerns of a possible delay in the development of the Covid-19 vaccine. However, the FBM KLCI marginally dropped by 0.4 per cent on the same day with a sell-off in glove counters, offsetting BNM’s decision to keep the overnight policy rate unchanged at 1.75 per cent, which is positive for the banking sector in terms of net interest margins.