Foreign funds will continue to snap up local heavyweights

FBM KLCI took a breather from its recent rally attribute to profit taking activities.

The benchmark index was
down 0.06% or 0.93 pts to close at 1,604.75. Majority of the sectors were positive with plantation (+0.8%), health care (+0.6%), and technology (+0.6%), leading the gains; while losers were seen in REIT (-0.6%), and financial
services (-0.3%). Market breadth was neutral with 571 losers against 568 gainers while 478 were unchanged.

Foreign funds

Total volume stood at 5.4bn shares valued at RM3.57bn.

the FBM KLCI closed flat despite encountering some selling pressure in the afternoon session.

Nonetheless, we view that yesterday’s intermittent correction as healthy and may act as a solid foundation for the local bourse’s ongoing uptrend.

“For today, we expect the index to hover between the 1,600-1,615 as we believe foreign funds will continue to snap up local heavyweights, namely the Banks and Telcos which are still trading at attractive valuations’” says Rakuten.

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Staff Writer

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