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KUALA LUMPUR: Foreign funds remained net sellers of Malaysian equities in the week ended July 26 at RM52.40mil, the largest weekly foreign net outflow in six weeks, MIDF Research says.
It said on Monday with one more trading day left, July is set to be a month of foreign net inflow as international investors have so far bought RM254.8mil net of local equities.
“On a year-to-date basis, the foreign net outflow from Malaysia stands at -RM4.41bil,” it said.
Last Monday, foreign funds sold -RM45.8mil net, coinciding with the 0.2% drop in the local bourse despite positive developments from the international trade front.
However, foreign funds returned on Tuesday by acquiring RM50.0mil net of local equities.
Foreign funds however moved to the sidelines on Wednesday, selling -RM5.6mil net ahead of the European Central Bank.s (ECB) meeting which would likely signal further easing.
However, Thursday then saw the highest level of foreign net buying for the week at RM58.3mil, lifting the FBM KLCI by 0.3% to close at 1,657.
On Friday, foreign net selling surged to -RM110.3mil, a level not seen in 10 trading days. Much of the scepticism was stoked by the dovish signal hinted by the ECB as it is preparing to cut
short-term interest rates and possibly restart its giant bond-buying programme to buffer the eurozone economy.
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