Capital outflow from Malaysia and emerging markets stabilising

Recovery seen: Heise says now may be an opportunity to shift a little bit back into EM and increase the portfolio share of EM which is regularly pretty low in most portfolios of institutional investors.

KUALA LUMPUR: Capital outflows from emerging markets (EM), including Malaysia, are expected to stabilise soon, as investors are now taking another look at beaten-down assets in these economies, according to Allianz SE.

According to the chief economist of the Germany-based insurance and asset-management company Dr Michael Heise, indications have emerged that investor sentiment towards EM is stabilising and maybe changing for the better after the rout and sell-off in recent months.