KUALA LUMPUR: Foreign investors turned net sellers of Bursa Malaysia equities with RM423.5mil of net sales, ending three weeks of foreign inflow.
The selling by offshore funds triggered a slump in the benchmark FBM KLCI last week, which returned to a two-week low after erasing nearly 24 points or 1.5% of its value.
The three sectors that saw the most net sales were technology (RM107.7mil), consumer products and services (RM87.7mil) and industrial products and services (RM80.8mil).
The only three sectors that experienced a net inflow of foreign dollars last week were property (RM43.9mil), utilities (RM42.2mil) and construction (RM6.5mil).
Meanwhile, local institutions net purchased RM256.4mil of local equities after having been net sellers for two straight weeks.
Local retailers net bought RM167mil of equities, ending a three weeks of net selling.
The average daily trading volume (ADTV) showed a decrease among local retailers (27.7%), local institutions (29.4%) and foreign investors (35.2%).
According to MIDF Research, markets will be focused on the Federal Open market Committee (FOMC) decision following their meeting this Wednesday as well as comments from Fed chair Jerome Powell at the press conference.
However, there is expected to be no change to the interest rate with the CME FedWatch Tool showing a 95.9% probability of the Fed maintaining the status quo.
In September, the CME FedWatch suggests a 100% probability of the lending rate being cut by at least 25 basis points.
