KUALA LUMPUR: Offshore investors offload stocks on to Bursa Malaysia for the 19th consecutive week, selling RM624.7 million net last week compared to RM600.8 million in the week before.
In its weekly fund flow report today, MIDF Research said that so far in 2020, foreign investors had sold RM16.4 billion net of local stocks.
"In comparison with the other six Asian markets we track, Malaysia still has the fourth smallest foreign net outflow on a year-to-date basis."
The firm said as markets reopened on Monday last week, international investors had taken out RM133.8 million net of local equities.
This was a similar trend for all Southeast Asian markets on fear of a resurgence in Covid-19 outbreak that could drag the economic recovery for a longer period.
Nonetheless, MIDF Research said local bourse managed to close slightly higher by about 0.3 per cent to 1,511.2 points on the same day.
"Note that the foreign net outflow occurred on every day last week.
"The foreign net selling continued to increase the next day on Tuesday at a tune of RM146.9 million before starting to subside on Wednesday and Thursday with the lowest foreign net outflow of the week on Thursday at a tune of RM74.7 million," it said.
Foreign net selling activity rose to RM159.7 million on Friday, which was also the highest foreign net outflow last week.
MIDF Research said investors' appetite was negatively affected by the downgrading of Malaysia's economic growth by World Bank on Thursday to 3.1 per cent from 0.1 per cent for 2020.
"The FBM KLCI Index closed lower by about 1.3 per cent to 1,488.1 points last week.
"In comparison to another three Southeast Asian markets that we tracked, Malaysia recorded the second lowest foreign net outflow and Philippines had the lowest foreign net outflow last week.
"While Thailand and Indonesia posted relatively higher foreign net outflow, foreign investors seemed to ease their selling last week as compared to the preceding week before," the firm said.
MIDF Research said in terms of participation, all investor groups recorded a weekly decline in their average daily traded value (ADTV).
"Foreign investors experienced the largest weekly decline in their ADTV by 45.5 per cent to reach RM880.4 million which was below the healthy level of RM1.0 billion," it added.