KUALA LUMPUR: Foreign funds continue to offload stocks listed on Bursa for the 19th consecutive week, according to MIDF Research.
“Based on data from Bursa, international investors sold RM624.7m net of local equities last week,” MIDF said in its weekly fund flow report.
“So far in 2020, foreign investors have sold RM16.4bil 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 added.
As markets reopened on Monday last week, MIDF said international investors took out RM133.8mil net of local equities which was a similar trend for all South East Asian markets on fear of a resurgence in Covid-19 outbreak that could drag the economic recovery for a longer period.
Foreign net selling continued to increase on Tuesday at a tune of RM146.9mil before it started to subside on Wednesday and Thursday with the lowest foreign net outflow of the week on Thursday at a tune of RM74.7mil.
Nonetheless, foreign net selling activity rose to RM159.7mil on Friday, which was also the highest foreign net outflow last week.
MIDF said investors’ appetite was negatively affected by the downgrading of Malaysia’s economic growth by the World Bank to -3.1% from -0.1% for year 2020 announced on Thursday. The KLCI Index closed lower by about 1.3% to 1,488.1 points last week.
“In comparison to another three South East Asian markets that we tracked, Malaysia recorded the second lowest foreign net outflow and Philippines had the lowest foreign net outflow last week,” the research house said.
While Thailand and Indonesia posted relatively higher foreign net outflow, foreign investors seemed to ease their selling last week as compared to the preceding week before.
In terms of participation, all investor groups recorded a weekly decline in their average daily traded value (ADTV).
Foreign investors experienced the largest weekly decline in their ADTV by 45.5% to reach RM880.4mil which was below the healthy level of RM1.0bil.
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