PETALING JAYA: Offshore investors sold RM598.1 million net of local equities on Bursa Malaysia last week, the fifth consecutive week of outflows.
On Tuesday, the market reopened from the Hari Raya Aidil Adha holiday which saw foreign investors take out RM209.6 million net of local equities amidst geopolitical turbulence from Argentina and Hong Kong.
• “This was the highest foreign net outflow seen during the week, pulling the local bourse below 1,600 points to settle at 1,592.88 points on the same day, the lowest close since late August 2015,” said MIDF in its fund flow report.
On Wednesday, the level of net outflow receded to RM73.3 million as US President Donald Trump delayed some tariffs on Chinese goods, which spurred a relief rally around the world.
“Furthermore, Chinese officials also planned to proceed with plans to have a face-to-face trade meeting with Washington in September, signaling that trade talks remain despite the last escalation of tariff threats by the US,” it said.
However, the pace of foreign selling swelled to RM196.8 million on Thursday due to concerns
that the US economy may slip into a recession following the inversion of the US treasury yield curve.
On Friday, net outflow slowed down to RM118.1 million as Malaysia posted a gross domestic product (GDP) growth of 4.9% year-on-year, beating market expectations.
On a month to date basis, August has seen a net foreign outflow of RM1.9 billion with year to date net outflow stands at RM6.64 billion, making up around 57.0% of last year’s total foreign net outflow.
In terms of participation, foreign investors experienced an 11.9% weekly drop in the average daily traded value (ADTV) to reach RM982.2m.
“Nevertheless, this was the smallest drop amongst other investor groups; the retail market and local institutional funds saw a weekly drop in their ADTV of more than 15.0%,” said MIDF.
source https://www.thesundaily.my/business/foreign-outflows-continue-for-fifth-consecutive-week-on-bursa-JI1280478
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