KUALA LUMPUR, March 21 -- Permodalan Nasional Berhad (PNB) expect the local stock market to improve when the government provides a clear indication of its economic direction.

In a Bloomberg report today, PNB chief executive officer Datuk Abdul Rahman Ahmad said there is "significant upside" potential when foreigner investors are lured back by the nation's strong fundamentals.

"The market always like clarity," Abdul Rahman told Bloomberg

"We are going through a period of transition. Fundamentally, we remain strong and the government will pursue policies that are positive for the market. Once the market understands that, flows will come back."

The Federal Territories Stock Exchange (FTSE) Bursa Malaysia KLCI Index tumbled about 6 per ce...