Foreign funds net sellers at RM522m in 4 days on Bursa Malaysia

KUALA LUMPUR: BIMB Securities Research expects buying to emerge soon as the market is oversold at the moment.

In its market outlook report on Friday, the research house attribute the weakness to the recent spate of earnings downgrade which saw its 2014 earnings growth forecast at -0.6%.

“The immediate support level for the FBM KLCI is seen at around the 1,730 level but we expect buying to emerge soon as the market is oversold at the moment,” it said.

BIMB Research said over the last four trading days, net foreign outflow had totalled RM522.8mil with the benchmark index losing 75.2 points or 4.1%.

“Locally, the KLCI continued with its slide as the index ended the day at 1,745.69, down 12.46 points. The local bourse had been extremely weak attributed to persistent selling by the foreign funds with another net outflow of RM172.3mil yesterday,” it said.

Overnight on Wall Street, the improved US labour market failed to spur any excitement as a lack of buying catalysts saw investors sidelined with the DJI Average remained quite flattish at 17,900.10, down a mere 12.52 points.

In Europe, stocks drowned in the sea of red following the European Central Bank’s (ECB) decision to delay its quantitative easing policy to 2015. Asian markets improved on expectations of additional stimulus from the ECB.