PETALING JAYA: Foreign investors sold RM87.9 million net of local equities last week, the lowest in 11 weeks.
Bursa began the week on a gloomy note as foreign investors pulled out RM115.8 million net of local equities, despite the announcement of more stimulus measures by the Bank of Japan which includes the additional purchase of commercial papers and corporate bonds.
Foreign net selling activity dipped on Tuesday to RM95.4 million, as investors acknowledged progress in the global fi ght against the coronavirus but remained cautious amidst a painful earnings period.
Wednesday then saw a massive drop in foreign net outfl ow to RM800,000/
“Most Asia-Pacific stocks gained Wednesday on cautiously positive sentiment that steps by governments around the globe to ease lockdowns will not set off a new deadly round of the respiratory illness,” said MIDF in its weekly fund flow report.
However, the tables were turned on Thursday as foreign investors scooped up RM124.5 million of local equities.
The local bourse followed suit to gain 2.0% higher, settling above 1,400 points, snapping the 11-day selling streak
“Risk-on sentiment was sparked by the effectiveness of a drug by Gilead Sciences against the Covid-19 pandemic,” MIDF noted.
In terms of participation, foreign investors saw a 9.4% weekly decline in its average daily traded value (ADTV), the largest amongst other investor groups.
Nevertheless, the absolute ADTV of foreign investors remained healthy above the RM1 billion mark.
For the month of April 2020, off shore investors took out RM2.67 billion net of local equities, more than half of what was sold in the preceding month.
The year-to-date foreign outflow from Malaysia came to RM10.30 billion.