PETALING JAYA: The selloff of funds held by offshore investors slowed to RM187.2 million net of local equities from RM408.5 million recorded in the previous week, marking the third consecutive week of selloffs according to MIDF Research.
The research house noted that the week began on the right note for Bursa on Monday, as international funds acquired RM61.4 million net of local equities, which lifted the local bourse by 0.6% to close at 1,604.4 points.
The following day, foreign net inflows surged to a two-week high of RM136.6 million.
MIDF Research explained in a report that the improved sentiment was to a “good and cordial” meeting between President Trump and Fed Chair Jerome Powell, in addition to the green light given to Huawei Technologies to continue exports with US companies for another 90 days.
However, the two-day buying streak ended on Wednesday as foreign funds sold RM106.4 million net of local equities.
Thursday saw the foreign net selling momentum continue as it reached 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 US and China,“ MIDF said.
On Friday, the pace of local equities sold off by offshore investors slowed down to RM41.5 million. MIDF said this followed President Xi Jinping’s remarks that China insisted on hammering out a deal with the US but was not afraid to fight back if necessary.
So far, November has seen a foreign net outflow of RM781.2 million.
Meanwhile on a year-to-date basis, foreign funds have taken out RM9.17 billion of local equities from Malaysia, making up 78.4% 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 (ADTV) of 12.9% but was still below the RM1 billion mark at RM995.1 million.
