KUALA LUMPUR: Foreign fund outflows slowed down to RM539.2mil net of local equities on Bursa Malaysia last week, marking the 17th straight week of foreign net selling activities.
“Based on data from Bursa, international investors sold RM539.2mil net of local equities last week, half of what was disposed of in the week before, ” MIDF Research said in its weekly fund flow report.
“So far in 2020, foreign investors have sold RM15bil net on Bursa. In comparison with the other six Asian markets we track, Malaysia still has the fourth smallest foreign net outflow on a year-to-date basis, ” it said.
International investors took out RM250.6mil net of local equities last Tuesday after markets reopened from the long weekend.
Nevertheless, foreign funds came into the local market at a tune of RM1.4mil net last Wednesday, snapping the 11-day selling spree on Bursa.
MIDF said the modest entry of foreign funds into Malaysia last Wednesday coincided with the local bourse settling at 1,575.3, the highest close since late January 2020. It added that the risk-on sentiment was spurred on Wednesday amidst the recovery movement control order taking effect.
However, the foreign net buying in the local market was short-lived last Thursday as international funds sold RM274.6mil net.
MIDF noted that the level of foreign net selling dropped substantially to just RM15.5mil on Friday.
Meanwhile, the overall mood in the market was sombre as investors grew warier of a second wave of covid-19 infections.
Moreover, the US weekly jobless claims data which showed 1.5 million Americans filing for unemployment insurance in the week before strengthened the Federal Reserve’s cautious commentary earlier on Wednesday.
In terms of participation, all investor groups recorded a weekly decline in their average daily traded value (ADTV).
Foreign investors were the group that experienced the smallest weekly decline in their average daily traded value ADTV of 13.2% to reach RM1.5bil. Despite the drop, the ADTV is still healthy at above the RM1bil mark.
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