KUALA LUMPUR (Feb 20): CIMB Securities said foreign investors remain underweight on Malaysian equities due to concerns over corporate earnings delivery, but it is maintaining its FBM KLCI target of 1,772. In a note on Friday, the research house said the earnings concerns — following past disappointments — continue to weigh on foreign investors' sentiment, amid higher operating costs, increased taxes, US import tariffs and ongoing industry challenges. “Overall, domestic investors are more positive on the market than foreign investors, who remain underweight on Malaysian equities,” CIMB said. It noted that the KLCI delivered positive 12-month returns ahead of elections in three of the past four polls, with banks, consumer and industrial stocks typically benefiting. CIMB added that there had been no significant pushback on its 'overweight' call on banks.

Source: The Edge Markets February 20, 2026 10:42 UTC