The huge decline in the Malaysian cash market in the fourth quarter of last year saw foreign investors going on bargain hunting activities. — AFP pic
Inter-Pacific Securities head of research Pong Teng Siew said the performance during the first week of July 2019 surpassed that of the entire month of June, which saw a net inflow of RM87.9 million and net outflow of RM134.6 million. “The current pattern is similar to the one recorded early this year when net buying was strong from January 9-February 8. But then the trend reversed,” he added.
“Meanwhile, the possibility of the US Federal Reserves reducing the interest rate is positive news. The global markets rallied for almost three weeks when the Fed announced a lower interest rate years ago.Meanwhile, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the average foreign fund participation ratio between July 1-4 stood at 22.5 per cent versus 29 per cent between June 24-27.
He said the market’s sentiment remained cautious amid lingering concerns following the headwinds from trade tensions and global growth.