Foreign funds boost Malaysian stocks prices

Asian Economic News, Jan 24, 2000

KUALA LUMPUR, Jan. 17 Kyodo

Foreign funds buying into Malaysian stocks continued to help push prices up at the Kuala Lumpur Stock Exchange (KLSE) on Monday.

The Composite Index tracking 100 stocks went up 5% before profit-taking seeped in just before the close, leaving the index up 25.18 points, 2.71%, at 953.42 at the finish.

Since last Tuesday, investors have gone on a buying frenzy that helped push the KLSE to a 29-month high.

"Foreign funds have started buying ahead of the KLSE reinstatement into the MSCI index this May. Seeing this, local players joined in fueling the market. But we are now seeing a correction," a local analyst said.

The MSCI refers to the Morgan Stanley Capital International Inc. index, a closely watched investment benchmark used by global fund managers.

Banking stocks continued to attract investors ahead of the Jan. 31 deadline for the submission of merger plans of all the domestic banks to the central bank.

Total turnover at the KLSE was 1.17 billion shares valued at 3.49 billion ringgit (918.42 million dollar).