Foreign-selling temporary, market to bounce back: Philip Capital

Philip Capital Management says the present foreign-selling of shareholdings are temporary and stems largely from reluctant sellers who fear a weaker ringgit would erode their investment based on exchange rate.

KUALA LUMPUR: The foreign-selling of Malaysian bonds and shares in the last two months leading to depressing market sentiments is due to a weaker ringgit rather than a bleak economy, and as such the trend is temporary, according to Philip Capital Management.

“When foreigners sell their stockholdings due to weaker currency instead of deteriorating economy, the disposals are only temporary as a weaker currency will erode their investment based on exchange rate,” the fund management company said.