STOCKS | Hong Leong Investment Bank: Indonesia Downgrade Could Shift Foreign Inflows to Malaysia

According to Jin10, Hong Leong Investment Bank analyst Jeremy Goh said in a report that if Indonesia is downgraded by MSCI, other Southeast Asian countries, including Malaysia, could benefit as foreign investment flows shift to other markets. He said weak market conditions in Indonesia could pose challenges for Malaysian companies with stakes in locally listed firms, particularly for fundraising and asset disposals. However, concerns related to MSCI in Indonesia are largely confined to the country and are unlikely to have a systemic impact on Malaysia. Hong Leong Investment Bank maintained its year-end target of 1,720 for the Kuala Lumpur Composite Index (KLCI). The index fell 0.2% intraday to 1,583.23 points.