That compares with outflows of RM19.5 billion last year and RM6.9 billion in 2014. Some of the largest shares from CIMB Group Holdings, Malayan Banking to Petronas Chemicals Group saw MSCI reducing their weightings in its indexes, prompting investors to rebalance their portfolios in line with the changes.ДЇoreign investors sold a net RM3.9 billion (S$1.31 billion)В of Malaysian shares in the five weeks from the end of April, reducingВ inflows so far this year to RM2.48 billion, according toВ MIDF Amanah Investment Bank, citing stock exchange data. The drop in Malaysian stocks was also aggravated by a cut in company share weightings by MSCI. The problem with short term is that sometimes markets would not behave correctly.' In the long term, good fundamentals would prevail. 'The only way to outperform the market is through stock-picking. 'In this tough market, we want to look at companies whose balance sheets are strong and their underlying operations are still generating cash flow,' Mr Chen said. Mr Chen Fan Fai, Kuala Lumpur-based chief investment officer of Eastspring Investments Bhd, said he's been buying some 'no-brainer' shares such as those with strong cash flow, real estate investment trusts, consumer stocks and infrastructure companies. 'The current correction is similar to a seasonal downpour resulting from economic, political and global macro noises.' 'This is a healthy correction and might be the best opportunity out there to position for the next leg up,' said Mr Tan Ming Han,В Kuala Lumpur-based senior investment manager of Amundi Malaysia, whose KAF Vision Fund beat 95 per cent of peers with a return of 14 per cent over three years. Not all money managers are bearish, especially withВ the measure priced near the cheapest level relative to global equities since the 2008 global financial crisis. Both 1MDB and Datuk Seri Najib have consistently denied wrongdoing. A Malaysian parliamentary committee identified at least US$4.2 billion of irregular transactions by the state fund, and recommended the advisory board headed by Prime Minister Najib Razak be disbanded. The probes and move against BSI's Singapore unit are part of global investigations surrounding 1MDB into alleged money laundering and embezzlement. The scandal surrounding 1MDB deepened last week after Singapore shut down BSI's unit in the city-state as the Swiss authorities began criminal proceedings against the Swiss bank related to money flows fromВ the embattled Malaysian investment fund. The Malaysian gauge is down 14 per cent from its record in 2014. The 1MDB issue is definitely keeping issues at bay, away from Malaysia.'ДЇor the year, the FTSE Bursa Malaysia KLCI Index has fallen 3.7 per cent, compared with a 4.3 per cent gain in the MSCI South East Asia Index.В Thailand's SET Index has rallied 11 per cent in 2016, Indonesia 5.3 per cent, Philippines 7.4 per cent and Vietnam 6 per cent. 'The other Asean markets have better growth prospects and better fundamentals. 'We're still not invested in Malaysia,' said Mr Raymond Kong, Singapore-based fund manager at One Asia Investment Partners, which oversees US$2.5 billion of assets.

Malaysia stock price