KUALA LUMPUR (Nov 6): Malaysian equities are poised for a comeback as the market has been “unloved” and shunned by foreigners for so long, according to Aberdeen Standard Investments.

The nation’s electronics manufacturers are set to benefit from renewed optimism surrounding the global technology industry, and the diversified economy will also provide support, said Gerald Ambrose, country head for Malaysia at Aberdeen Standard.

“It’s under-owned and therefore the traders will come back,” he said in an interview in Kuala Lumpur. “Foreigners have really lost interest in the country. Fundamentally we look okay without looking great.”

Southeast Asia’s worst performing stock market has shown tentative signs of a recovery after sinking to a four-year low in October. The benchmark FTSE Bursa Malaysia KLCI Index is attempting to breach a key resistance level while investors poured money into the sole U.S.-listed exchange-traded fund
tracking the shares at the fastest pace since January 2018.

Overseas investors exited Malaysia due to disappointment with the policies of Prime Minister Mahathir Mohamad’s administration after it assumed power last year, he said.

Longer-term prospects are, however, more subdued, due partly to limited scope for stimulus as the government seeks to cut its debt, said Ambrose.