PETALING JAYA: Foreign net outflows on Bursa Malaysia resumed with the selling of RM415.3 million net of local equities last week, cancelling off the RM350 million net inflows recorded in the preceding week.
Foreign investors have disposed of RM65.3 million net of local equities since early this month. Year-to-date, the foreign net outflows stand at a RM4.86 billion.
According to MIDF Research, US President Donald Trump’s suspension plans on punitive tariffs on goods from Mexico mainly spurred risk on mood on Bursa, attracting RM59 million net of foreign inflows on Monday.
“Apart from that, the anticipation of economic stimulus from the US Fed also lent support to investors’ appetite. As such, the foreign net buying streak was stretched to six days, the longest since nine-day selling spree observed from the middle to the end of January 2019,” it said.
With that, the local bourse rose 0.4% to settle at 1,655 points on Monday, the highest since March 22, 2019.
However, the positive development took a turn on Tuesday as international funds offloaded RM101.5 million net of local equities, dragging the FBM KLCI down by 0.3% to reach 1,651.2 point as Trump threatened to raise tariffs on China again if President Xi Jinping does not attend the G-20 summit at the end of this month.
On Wednesday, the foreign outflow continued to reach RM143.2 million net partially attributed to the protests in Hong Kong against the proposed law allowing its citizens to be extradited in China.
The research house pointed out there was signs of relief on Thursday as foreign outflows receded to RM23.3 million.
However, it said this was shortlived as foreign investors dumped RM206.2 million net on Friday amidst jitters caused by a slowdown in China’s industrial output to the weakeast level in 17 years and the attack on two oil tankers in the Middle East in the gulf of Oman.
Average daily traded value of all investor groups (retail, institution and foreign) increased for the week as the majority returned back from the festive holidays.