What triggers are needed for foreign investors to return to Bursa?

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Foreign investors need a mix of broader market participation, domestic support, and renewed foreign buying for Bursa to sustain a break above 1,700.

Mohd Sedek Jantan of IPPFA Sdn Bhd said a sustained move above the 1,700-point milestone requires broader participation, including heavyweight banking stocks, alongside continued domestic institutional support and a return of foreign buying. He also pointed to an improving global risk backdrop, supported by lower geopolitical risks and a potentially more accommodative monetary policy environment, as conditions that can help bring foreign investors back into regional equities. In addition, stronger corporate earnings guidance and improving global market sentiment were cited as catalysts for a more durable rally.
A sustained break above 1,700 needs more than local buying
Jantan said Bursa’s ability to hold above the 1,700 level depends on broader market participation rather than only selective local demand. He highlighted heavyweight banking stocks as a specific area that should participate in the move, alongside continued domestic institutional support.
Foreign buying returning is explicitly treated as a requirement
He stated that continued domestic support alone would not be enough for a sustained break, and that a return of foreign buying was needed. This frames foreign participation as a key ingredient for the index to stay above the psychological 1,700 threshold.
Global risk sentiment and policy expectations help set the backdrop
Jantan linked improving global risk sentiment to a favourable environment for regional equities, including Bursa Malaysia. He cited lower geopolitical risks and a potentially more accommodative monetary policy environment as factors that have improved global appetite for risk assets.
Corporate earnings guidance and global sentiment support a durable rally
He added that stronger corporate earnings guidance and improving global market sentiment are important catalysts for a more durable rally. The market context also included a cautious tone during the week ended, with late-session profit-taking attributed to the lack of fresh catalysts, which underscores why sentiment and earnings visibility matter for foreign participation.

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What triggers are needed for foreign investors to return to Bursa?

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