RM1.33bil in foreign funds exit Malaysian equities


KUALA LUMPUR: The outflow of foreign funds form Bursa Malaysia hit a whopping net value of RM1.33bil last week, the second-highest outflow recorded since April 2024.

In the week leading up to the inauguration of Donald Trump as the US President, foreign funds continued to leave Asia for a third consecutive week.

However, it has been a much longer losing streak for Bursa Malaysia, which has registered 13 consecutive weeks of net foreign outflow.

In the week ended Jan 17, 2025, foreign outflows were recorded on every trading day with the largest net deficit on Monday at RM328.2mil.

By sector, the highest net foreign outflows were recorded in construction (RM313mil), property (RM156.9mil) and consumer (RM127.1mil).

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The only sector with net foreign inflows were REITs with RM1mil in net foreign purchases.

Amid the exodus of foreign investors, local institutions supported the market with RM797.8mil in net purchases, extending their buying streak to 13 weeks, or about as long as the foreigners have been selling.

Local retail investors were net buyers for a second week, with RM530.8mil net in equities buying.

Trading activity declined across two out of three categories - with average daily trading volume (ADTV) increasing 13.7% for foreign investors, decreasing 4.5% for local institutions and shrinking 7.5% for retail investors.

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