KUALA LUMPUR: Foreign net selling of Malaysia equities slowed down last week to RM486 million from RM631.9 million in the preceding week, according to MIDF Research.
“In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third smallest foreign net outflow on a year- to-date basis.
“The year-to-date foreign outflow from Malaysia came to RM8.12 billion,” MIDF Research said in its weekly fund flow report today.
The firm said Monday recorded a foreign net outflow of RM108.5 million in tandem with the FBM KLCI’s 1.1 per cent drop and the descent of Brent crude oil price to its lowest point in 18 years.
Tables were turned on Tuesday as offshore investors mopped up RM113.4 million net of local equities, snapping the 28-day foreign net selling streak.
“The local bourse followed suit gain by 1.7 per cent to close at 1,350.9 points, the highest close in more than two weeks.
“Risk-on appetite was mainly boosted by the expansion in China’s manufacturing activity in March 2020,” it said.
However, MIDF Research said the foreign net inflow was short lived as foreign investors dumped RM253.4 million on Wednesday, the highest foreign net outflow during the week.
It said investors’ nerves were frayed as Asian manufacturing activity data including Malaysia showed a slowdown last month.
“The momentum of foreign net selling decelerated to RM96.8 million net on Thursday following President Trump’s expectation that Saudi Arabia and Russia to announce a deal on an oil production cut.
“As such, Brent crude oil price jumped by 28.0 per cent on Thursday to US$29.9 per barrel, the largest daily gain in history,” the firm said.
Friday saw a foreign net outflow of RM140.7 million as FTSE Russell kept Malaysia on the watchlist for bond index exclusion.
“In terms of participation, the average daily traded value of foreign investors increased the most by 5.5 per cent to RM1.27 billion, which is still at a healthy level,” it said.