Foreign institutional funds also turned net buyers, pumping in RM293 million this week against RM417 million previously.

These positive developments suggest that values are emerging among Malaysian stocks at a time when interest rate hikes have tapered down in the United States, said Bank Islam chief economist Mohd Afzanizam Abdul Rashid,

“The week started off on a weak note.

“China’s sluggish economy in the fourth quarter of 2018, global growth forecast revision by the International Monetary Fund (IMF) and the lingering effects from the long drawn-out discussions between the US and China as well as Brexit left the market with much uncertainty,” Afzanizam told Bernama.

He said the FTSE Bursa Malaysia KLCI (FBM KLCI) was lingering around the immediate resistance level of 1,700 points although it attempted to breach the level especially in the early part of the week.

“For next week, we can expect the market to remain timid with no progress made on Brexit and the US-China trade negotiations.

“The Federal Open Market Committee meeting on Jan 30 will also be closely watched by the market,” he said.

Inter-Pacific Research Sdn Bhd head of research Pong Teng Siew said emerging markets saw renewed interest from international investors after the US Federal Reserve decided to slow the pace of interest rate hikes, while the uncertainty over Brexit was benefiting other regions.

Pong said the pattern of funds flowing into the country’s equity market was different this week with more interest emerging for small and mid-cap counters as opposed to big-cap and index-linked stocks in other markets in the region.

“Surprisingly, the FBM KLCI benefited less than other regional markets but the inflow of funds was encouraging and managed to push up small and medium-cap counters,” he said.

He said the uncertainty over Brexit also led to investors shifting their investment to emerging markets.

Putra Business School senior lecturer and manager for business development Ahmed Razman Abdul Latiff said movements on Bursa Malaysia were lacklustre as investors were awaiting the outcome of US-China trade talks at the end of this month.

“Crude oil price remained stable, hovering around US$60 per barrel, while the ringgit weakened further to RM4.14, which could help boost exports.

“Bank Negara Malaysia’s decision to maintain the overnight policy rate at 3.25% will also help reduce uncertainties in the market,” he said.