KUALA LUMPUR: The escalating trade tensions between the US and its trading partners led to a significant outflow of foreign dollars from Bursa Malaysia in the previous week.
A selloff in local equities by foreign funds saw a net outflow of RM1.34bil from the domestic market, a large increase from the net outflow of RM881.5mil in the prior week.
According to data compiled by MIDF Research, foreign investors were net sellers on every trading day of the week, with Tuesday recording the heaviest net outflow of RM446.6mil.
By sector, the heaviest net outflow was recorded in financial services (RM703.8mil), consumer products and services (RM122.6mil) and utilities (RM119.2mil).
Local institutions were seen picking up stocks, holding up the market for a 21st straight week with a net inflow of RM1.31bil, more than double the inflow of RM617.3mil in the previous week.
Local retail investors were also net buyers over the week, although their net purchases declined to RM31.5mil compared to RM264.2mil in the preceding week.
MIDF reported board-based increases in the average daily trading volume, except for local retail investors.
Foreign investors and local institutions recorded gains of 11% and 10.9%, respectively, while local retailers saw a marginal decline of 1.6%, it said.
