Not a pretty picture

WHETHER people like it or not, it is the foreign flow of money into the stock market that really is the fifth gear for market momentum.

The FBM KLCI has been performing poorly since the start of the year and weekly fund flows do not give any confidence that foreign funds are anytime soon going to change their direction of investment. When there is news of hundreds of millions of ringgit every week leaving the market, it is a problem for equities in general.

In the past, when the stock market roared upwards, it was a combination of foreign funds and local funds that drove the market higher.

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