Foreign selling on Bursa slows to RM631.9m last week

30 Mar 2020 / 13:05 H.

PETALING JAYA: International investors sold RM631.9 million net of local equities last week, the first time in five weeks that international funds disposed of local equities below the RM1.0 billion mark.

“In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third least foreign net outflow on a year-to-date basis. The year-to-date foreign outflow from Malaysia came to RM7.63 billion,“ said MIDF Research in its fund flow report today.

It said last Monday recorded a foreign net outflow of RM244.2 million, dragging the local bourse 3.3% lower to 1,259.9 points. Sentiment was dampened as the discussions of a US stimulus package faced hurdles from the US Senate Democrats.

Foreign net selling activity was lower by half at RM116.5 million net on Tuesday. Risk appetite returned to Asia following the Federal Reserve’s plan to buy unlimited amounts of Treasury bonds to keep borrowing costs low.

The level of foreign net selling fell for the third consecutive day on Wednesday after off shore investors only sold RM81.6 million net. US President Donald Trump’s deal with the Senate Democrats and Republics on a historic rescue package outweighed the extension of the movement control order by the government of Malaysia.

The momentum of foreign net selling inched higher to RM91.3 million net on Thursday as Malaysian’s number of Covid-19 infections reached 2,031 cases.

Friday then saw a foreign net outflow of RM98.35 million as US unemployment surged to a record 3.3 million, amplifying economic concerns from the Covid-19 pandemic.

“Nevertheless, the local bourse was up by 1.1% to close at a two-week high of 1,343.1 points, as investors digested the latest RM250 billion stimulus package announced by the government,” said MIDF.

In terms of participation, the average daily traded value of foreign investors dropped the most by 41.9% to RM1.20 billion, which is still at a healthy level.

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