PETALING JAYA: Bursa Malaysia saw foreign net outflow taper to RM278.7 million for the week ending Sept 6, 2019, marking the eight consecutive week of sell-off for local equities.
MIDF Research said in a note that the week started on a sluggish note as international funds dumped RM122.8 million net local equities on Tuesday.
It said the general sentiment remained cautious after the US increased tariffs on Chinese goods by 15% on Sept 1.
“Moreover, the risk-off mood was exacerbated by the struggle between Beijing and Washington to set a date to continue trade talks, dragging the local bourse 1.3% lower to close at 1,591 points on the same day.”
MIDF said the heavy outflow conforms to the other market in its coverage namely, South Korea, Thailand and Taiwan.
Nonetheless, foreign net selling activity slowed down to RM78 million on Wednesday, sparked by Hong Kong’s decision to formally withdraw the extradition law as well as the likelihood of a hard Brexit being avoided.
“The FBMKLCI followed suit to advance the most during the week by 0.5% on the same day to settle at 1,599.9 points.”
On Thursday, Bursa saw international funds buying RM2.75 million net of local stocks, due to a lift in overall sentiment from the news that trade talks between China and the US will resume in early October.
However, the inflow was short-lived as foreign funds disposed of RM80.6 million net of local equities on Friday despite a strong jobs data from the US.
On a year-to-date basis, foreign funds have taken out RM7.62 billion net of local equities from the local bourse, equivalent to 65% of last year’s total net foreign outflow of RM11.69 billion.
In terms of participation, foreign investors experienced the largest weekly drop of 27.2% in the average daily traded value, slipping the RM1 billion mark at RM996 million.
source https://www.thesundaily.my/business/foreign-outflow-enters-8th-week-tapers-to-rm278-7m-MX1356824
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