Why should foreign funds invest in our local stock market and listed companies if the valuation versus their growth trajectory or earnings is not in tandem? A good example would be Singapore. The Singapore Exchange (SGX) for the past 10 years has suffered a wave of delistings. In 2010, there were 783 listed companies on the SGX. As at end-2020, there were only 715 listed companies remaining.
THE FBM KLCI closed above 1,600 points this week for the first time in five months since March 23, 2021.
It has been six consecutive days that our index continued to scale impressively. The index was single-handedly lifted due to the foreign funds flowing back into Bursa Malaysia with limited support by local institutions and retail investors, who have been net sellers.
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