Bursa Malaysia: Foreign investors more supportive
January 25th, 2007According to the statement by Bursa Malaysia CEO, it seems that the foreign investors are much more bullish about investment opportunities in Bursa Malaysia as compared to local investors.
Foreigners are more bullish on and have stronger interest in Malaysian stocks than local investors, according to Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff.
“Foreign fund managers are gung-ho on Malaysian stocks. However, local investors seem to have no faith in domestic companies,†Yusli commented after the launch of FTSE Emas Syariah Index yesterday.
He noted that foreign institutional investors were the net buyers on Bursa, accounting for 35% of last year’s daily volume. Locals, especially retail investors, were still waiting on the sidelines although the market had rallied for more than three months.
Perhaps the slow economic growth and the recent flood disaster which occured twice in the south of Peninsular Malaysia, touted as the “Iskandar Development Region” which prompted the slow response of the Federal Government, has contributed to this market sentiment, undermining the ability of the present government to contribute to business growth.