Brexit makes Malaysia attractive and is upgraded to 'overweight' Nomura

Mixo: ‘With the developed markets being downgraded, this will favour more inflows into Asia and emerging markets.’

KUALA LUMPUR: The Malaysian market looks to be trading at its bottom, and the United Kingdom’s referendum to leave the European Union or Brexit, has made Malaysia even more attractive, with Nomura upgrading it to an “overweight” as of Monday, said Nomura vice-president of equity strategy, Asean and Asia ex-Japan global markets, Mixo Das.

Nomura has a year-end target of 1,765 for the FTSE Bursa Malaysia KL Composite Index. It also sees the ringgit as being very cheap now and expects it to be the outperformer of regional currencies, going forward.