KUALA LUMPUR: Foreign funds selling of local equity extended to 24th straight week, but at a slower pace of RM226.1mil last week from RM910.2mil in the prior week, according to MIDF Research.
“So far in 2020, foreign investors have sold RM19.0bil 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,” MIDF said in its weekly fund flow report.
The research house noted that foreign investors acquired RM63.5mil net of local equities which was also the only day that Bursa experienced a foreign net inflow.
On Tuesday, foreign investors reverted to being net sellers in which Bursa recorded a foreign net outflow of RM49.3mil despite Malaysia posting a record high trade surplus of RM20.9bil in June 2020 as exports rebounded to positive territory for the first time since MCO.
Foreign net outflow increased on Wednesday and Thursday last week at a tune of RM93.6mil and RM146.6mil respectively.
MIDF said foreign investors remained in risk-off mode as the domestic political landscape continued to be uncertain and record high contraction in the U.S. and Eurozone economies.
“In comparison to another three South East Asian markets that we tracked last week, Malaysia recorded the second highest foreign net outflow after Indonesia while Thailand experienced the least foreign net outflow,” it said.
In terms of participation, the retail investors recorded a weekly increase of 23.8% in average daily traded value (ADTV) to RM5.6bil.
Foreign investors experienced the least weekly increase in ADTV by 7.7% to reach RM1.5bil which was above the healthy level of RM1.0bil.
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