Rakuten Trade head of equity sales Vincent Lau told Stabiz that he expected the market to stage a rebound on positive news such as FTSE Russell removing Malaysia from a watch list of possible exclusions and expectations of a higher economic growth.
The weakness in the local market was in line with its regional peers which also saw declines, largely due to the surge in US government bond yields and a strengthening US dollar.Observers reckoned that the local stock market could be “oversold” and it is due for a “rebound” especially with economic recovery expected to pick up in the second half.
He pointed out that the decline in the local stock market is in line with the soft regional markets yesterday. The FBM KLCI fell more than 40 points before closing 35.68 points lower to 1,573.51 points dragged by glove and consumer products counters.