Navigating a tricky 2019
Emmanuel Samarathisa | 05 Apr 2019 00:30
One measure of strength of a listed company is how much in institutional funds it attracts. While that may not necessarily mean it is a favoured stock, it does to a certain extent indicate its prospects.
So how influential are institutional investors in the Malaysian stock market? Bloomberg data shows that local and foreign institutional holdings in Bursa Malaysia counters amount to a staggering 316.09 billion shares worth an estimate RM1.02 tril.
But this year, just like the last, is set to be challenging for both overseas and local funds. At the time of writing, foreign funds have become net sellers of Malaysian equity.
In March, foreign investors sold RM1.56 bil, bringing total outflows so far this year to RM135 bil. This is in contrast with last year when there was foreign net inflow of RM2.2 bil ahead of the 14th general election in May.
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