FOREIGN funds are coming to Malaysian shores, bumping up valuations but keeping the party at the FBM KLCI going strong. For now though, the FBM KLCI is up 8.93% or 146.61 points on a year-to-date basis at Thursday’s close of 1,788.42. Chan explains that FBM KLCI earnings growth has been leading real gross domestic product (GDP) growth by one quarter. The second quarter earnings of the companies under the S&P 500 are now underway, and expected to increase 12.4% from the second quarter of 2016. When growth stocks, (with their typically higher valuations) outperform, market valuations overall rise.

Source: The Star September 16, 2017 00:22 UTC