Outflows show Malaysian stocks still facing headwinds

-A +A

SINGAPORE (June 17): Foreigners have resumed selling Malaysian stocks and that will make it tough for the KLCI index to surpass last week's high. Indeed the gauge could soon be returning to an area below the 1,600 line where it was last month. Adding to its clear underperformance against other major Asian indexes this year.

In addition, the ringgit faces volatility due to uncertainty in global trade and geopolitical developments, Bank Negara's governor told the Star newspaper.

Given the central bank will probably need some time to judge the impact of last month's rate cut on the economy, it looks like all headwinds for Malaysian stocks.