Local institutional, foreign investors inducing rally

PETALING JAYA: The strong performance of the FBM KLCI since June last year, which rocketed past the 1,600-point barrier for the first time in more than two years last week, is leaving investors curious if the rally can be sustained.

The benchmark is up some 10% year-to-date and over 16% from its low in June last year. Many believe the trajectory could depend on how long local institutional investors remain in a net long position, which will in turn attract retail and foreign investors into the market.