PETALING JAYA: International investors disposed of RM327.4 million net of local equities last week, the third weekly foreign net outflow so far in 2020.
“Offshore investors continued to sell equities listed on Bursa last week albeit at a slower pace,“ MIDF Research said in its fund flow report.
Investors again mulled the uncertain Wuhan coronavirus outlook and how hard the ailment will strike Asian economies. This led to a foreign net outflow of RM107.2m last Monday, in conformity with regional peers such as South Korea, Indonesia and the Philippines.
The level of foreign net selling later slowed down to US$57.0 million on Tuesday, marking the local bourse’s first gain after 10 days of losses.
Foreign net selling activity however gathered momentum on Wednesday to peak during the week at RM205.4 million net. This was despite China’s central bank move to inject US$57 billion into its markets to soften the financial blow of the recent virus outbreak.
The sentiment on Thursday nevertheless improved following China’s plan to halve tariffs on US$75 billion of imports from the US. As such, Malaysia saw a foreign net inflow of RM84.5 million net on Thursday which snapped the seven-day foreign net selling streak.
The foreign net inflow was however short-lived as Friday saw foreign funds disposing of RM42.5 million net, booking profits after the rally on Thursday and also due to receding concerns over the Wuhan coronavirus.
“Thus far in 2020, Malaysia has seen a foreign net outflow of -RM465.7 million. In comparison to the other three Asean markets we track, Malaysia has the smallest foreign net outflow on a year-to-date basis after Thailand and the Philippines.”
In terms of participation, the average daily traded value (ADTV) of foreign investors increased by 18.0% during the week to remain at a healthy level of above RM1.0 billion. Meanwhile, other investor groups such as retailers and local institutional funds experienced a drop in their weekly ADTV.
