Who is really participating in FBMKLCI?

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Since Jan 2015, what is quite obvious – retail investors have been shying away from this market. It’s like as if they are waiting at the sideline. Are they waiting for post-GE14?

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Source: http://www.malaysiastock.biz/

Since Jan 2015, foreigners’ fund outflow peaked in Dec 16 (this could possibly attributable to certain negative credit perception of the country – http://www.theedgemarkets.com/article/moodys-malaysias-medium-term-goal-balanced-budget-2020-risk). Since then, there has been gradual inflow of foreigners’ funds. Nevertheless, the current cumulative net movements (since Jan 2015) remains in negative territory.

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Source: http://www.malaysiastock.biz/

As widely reported, the market is very much supported by domestic local institutions (e.g local saving / pension institutions, local funds, etc).

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Source: http://www.malaysiastock.biz/

Do we have ample domestic liquidity?

In view of ageing population / higher cost of living, we may anticipate higher rate of withdrawals from these savings / pension institutions in the near future. For example, we see higher withdrawal rate from one of the pension / saving institutional funds (shown below):

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