KUALA LUMPUR: Offshore investors continued to reduce their holdings in stocks listed on Bursa Malaysia for the third
week running albeit at a slower pace.
MIDF Research said foreign investors had taken out RM187.2 million net of local equities last week compared to RM408.5 million net sold in the preceding week.
With a week left before November ends, the month has so far seen a foreign net outflow of RM781.2 million.
On a year-to-date basis, MIDF Research said foreign funds had taken out -RM9.17 billion of local equities from Malaysia, making up 78.4 per cent of last year’s total foreign outflow of RM11.69 billion.
In terms of participation, foreign investors saw an increase in average daily traded value of 12.9 per cent but was still below the RM1 billion mark at RM995.1 million.
Bursa, the firm said, had begun the week on the right foot as international funds acquired RM61.4 million of local equities on Monday, lifting the local bourse by 0.6 per cent to close at 1,604.4 points.
The foreign net inflow later surged to RM136.6 million net on Tuesday, the highest in more than two weeks.
“Sentiment was better following a meeting between US President Donald Trump and Fed chair Jerome Powell which was deemed good and cordial in addition to Huawei Technologies given the green light by the US to continue exporting with US
companies for another 90 days.”
Nevertheless, the two-day buying streak ended on Wednesday when foreign investors disposed RM106.4 million net of local equities.
Foreign net selling momentum then gained on Thursday to reach RM237.3 million net, the highest since early October 2019.
“Investors’ nerves were frayed after US lawmakers passed a bill supporting the rights of Hong Kong residents and potentially
derail trade negotiations between the U.S and China,” MIDF Research said.
The pace at which foreign investor sold local equites slowed down on Friday to a level below
RM100 million net at RM41.5 million.
This followed President Xi Jinping’s remarks that China insisted to hammer out a deal with the US but was not afraid to fi ght back if necessary.