Net foreign outflow moderates to RM415.1mil on Bursa Malaysia

KUALA LUMPUR: The net outflow of foreign funds from Bursa Malaysia moderated to RM415.1mil in the past week from RM1.51bil in the week before as investors sold down financial services stocks.

In its weekly fund flow report, MIDF Research said foreign investors were net sellers everyday of the week except for Tuesday.

The risk appetite for global equities was dampened last week as US inflation data came in above expectations for the second consecutive month, reaffirming the Federal Reserve's cautious stance on interest rate cuts.

In February, the core US consumer price index (CPI), excluding food and energy, rose 0.4% month-on-month and 3.8% year-on-year, beating estimates by a tenth of a percent.

US producer prices also increased more than expected amid a surge in the cost of goods like gasoline and food, up 0.6% last month after advancing by an unrevised 0.3% in January 2024.

By sector, Bursa Malaysia saw the highest net foreign outflows in financial services (RM186mil), plantation (RM115.7mil) and energy (RM59.6mil).

The highest net foreign inflows were recorded in property (RM81.1mil), construction (RM37.1mil) and transport and logistics (RM17.7mil).

Local institutions remained net buyers for a third straight week with RM575.8mil while local retailers turned net sellers at RM160.7mil after two weeks of net buying.

MIDF reported the average daily trading volume (ADTV) rose across all investor classes, with local retailers seeing an increase of 13.9% while local institutions and foreign investors saw increases of 11.2% and 30.1% respectively.