Foreign selling on Bursa rises to RM1.15b last week

PETALING JAYA: International investors sold RM1.15 billion net of local equities last week compared to RM663.8 million disposed in the week before.

“In contrast with other Asian markets which saw a weekly foreign net inflow, Bursa marked its 16th consecutive week of foreign net selling,“ MIDF Research said in its fund flow report today.

Foreign investors have so far taken out RM14.4 billion net of local equities from Malaysia.

“In comparison to its other six Asian peers that we monitor, Malaysia is now the nation with the fourth smallest foreign net outflow on a year-to-date basis.”

Bursa began last week on a sluggish note as foreign investors sold RM179.4 million on Monday. Foreign investors reacted to US President Donald Trump’s plan to begin the process of eliminating special treatment for Hong Kong.

The level of foreign net outflow inched higher to RM191.4 million on Tuesday. Investors were balancing cautious optimism about the reopening of businesses against worries that widespread protests in the US which could disrupt the economic recovery and widen the outbreak.

Foreign net selling peaked on Wednesday at RM387.6 million net, bucking the trend of foreign net inflows seen in peers namely, South Korea and Taiwan. Nevertheless, the local bourse was up by 2.1% to settle at 1,538.5 points supported by local institutions which bought RM545.8 million on the same day.

Thursday saw a slightly lower foreign net outflow of RM237.8 million net before shrinking further to RM150.2 million on Friday. The slowdown in foreign net outflow was partly attributable to the

announcement of Malaysia’s short term recovery plan on Friday which put the automobile sector in the spotlight due to the sales tax exemption on car purchases.

“In terms of participation, only foreign investors saw a substantial weekly decline in their average daily traded value (ADTV) of 50% to reach RM1.7 billion. Nevertheless, the ADTV is still healthy above the RM1.0 billion mark,“ MIDF said.

source https://www.thesundaily.my/business/foreign-selling-on-bursa-rises-to-rm115b-last-week-LA2543692