PETALING JAYA: Sustained foreign inflows will be crucial to broaden market participation and meaningfully lift Bursa Malaysia’s trading momentum, as the market’s current rebound remains fragile and largely index-led.
Tradeview Capital chief executive officer Ng Zhu Hann said the average daily value (ADV) of trades on the local bourse is still lagging despite the FBM KLCI’s move above the psychological 1,700-point level this year, because the rally so far has been concentrated in heavyweight stocks.
“The current momentum is still very fragile.The FBM KLCI has pushed past the 1,700 level mainly because of net foreign inflow, which, for at least the last four to five days in a row, has been returning to our market.
“Nonetheless, there is still more active participation in the bigger names, and the market has yet to see spillover into the small and mid-cap stocks,” he told StarBiz.
...