Selling pressure from foreign investors may limit gains from local funds

The FBM KLCI rose by 0.2%, recovering in the final hour of trading despite concerns about a potential economic slowdown following a drop in US consumer confidence data. While lower liners were weaker, the plantation sector performed well, gaining 1%.

Market Outlook

The market is expected to consolidate, with the FBM KLCI remaining range-bound between 1,635 and 1,680. Selling pressure from foreign investors may limit gains from local funds. Volatility is likely to persist due to a lack of fresh catalysts.

Lower liners are also expected to soften due to weaker sentiment. Investors will focus on key economic data, including Malaysia’s PPI and the US Q2 GDP. Moving forward, the REIT sector may gain traction due to its defensive nature, while the consumer discretionary sector looks appealing, supported by a stronger Ringgit and upcoming salary adjustments for civil servants.

Staff Writer

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