KUALA LUMPUR: Foreign funds remained net buyers on Bursa Malaysia on Wednesday as investors anticipate a more cautious stance on policy by the US Federal Reserve in a meeting this week, which could signal a prolonged low interest rate environment.
BIMB Securities Research said on Thursday foreign funds were net buyers at +RM192.1mil while local institutions were net sellers at -RM225.5mil. Retail investors were also net buyers at +RM33.4mil.
As at 10AM, The FBM KLCI gained 14.11 points or 0.82% to 1,707.51 points, in line with its regional peers. Asian markets also rallied, tracking the gains seen in the US indices overnight.
European stocks finished lower on Wednesday ahead of the Fed's policy decision. The Fed reached a decision to hold its benchmark rate target at 0.25% to 0.5% yesterday.
In a statement, the Federal Market Committee (FOMC) referred to global economic and financial developments twice, signaling that the Fed is considering the external market environment in its deliberations on whether to raise rates further this year.
Wall Street closed higher on Wednesday with both key indices hovering near recent highs.
The DJIA gained 0.43% to end at 17,325.76 while S&P500 rose 0.56% to close at 2,027.22.
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