KUALA LUMPUR: Selling activity amongst foreign investors increased last week, according to MIDF Research.
“Based on data from Bursa Malaysia, international investors sold RM843.2mil net of local equities last week compared to the RM774.1mil disposed in the week before, ” MIDF said in its weekly fund-flow report.
In comparison with its other six Asian peers that MIDF monitors, Malaysia remains as the nation with the third smallest foreign net outflow on a year-to-date basis after Indonesia and Philippines.
“Foreign investors have so far taken out RM11.9bil net of local equities from Malaysia, ” MIDF said.
As markets reopened from the public holiday, foreign investors on Tuesday sold RM159.9mil on growing worries about a second wave of Covid-19 infections after the city of Wuhan lifted its lockdown.
Trading volume on Bursa skyrocketed to a record of 9.6 billion shares last Wednesday amidst interest in healthcare related counters sparked by a possible second wave of Covid-19 infections. Foreign net selling activity on that day rose to RM239.6mil.
The momentum of foreign net outflow accelerated last Thursday to RM334.6mil, after overnight Wall Street declines and generally headed south as investors weighed economies wracked by the tenacious Covid-19 pandemic and cautious commentary by the US Federal Reserve Board Chairman Jerome Powell.
MIDF noted that Friday witnessed a slowdown in foreign net selling to RM109.0mil.
In terms of participation, all investor groups saw a weekly increase in their average daily traded value (ADTV).
Foreign investors recorded the smallest weekly gain in ADTV of 44.1% to return above the healthy RM1bil mark.
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