MARKET TALK: Malaysia Shrs May Face More Foreign Selling -Maybank

[Dow Jones] Malaysian stocks face further downside in the near term on the risk of more foreign selling after the benchmark KLCI's 6.6% drop in August, says Maybank IB's Wong Chew Hann. Data from the stock exchange show foreigners were net sellers in August with MYR3.8 billion outflow after four consecutive months of net buying during the April-July period. "We believe that there could still be some near-term downside potential as August's net activities reversed out just 58% of the total net foreign buying in April-July," says Wong in a note. He adds, the KLCI is expected to rebound toward the year-end to the house's revised target of 1520. The KLCI is down 0.5% at 1456.58.(jason.ng@dowjones.com)