PETALING JAYA: Foreign funds have shifted to low-risk assets with investor sentiment being driven mainly by global uncertainty, according to analysts.
MIDF Research said local institutions continued to “provide a buffer against foreign selling”, with a 24th consecutive week of net buying and a net inflow of RM369.1mil for the week.
It said retail investors were also net buyers with an inflow of RM57.5mil, ending their single-week selling streak.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that while foreign investors appeared to be pulling back from the equity market and “money is still in our shores.”
Foreign ownership in Malaysia’s Treasury Bills rose to 52.7% as of February 2025, compared with 19.6% in October 2024.
He also pointed to the growth in Malaysia’s foreign exchange reserves to US$118bil as of March 14, 2025, from US$115.5bill in mid-January.
The indicators suggested that foreign investors were reallocating their investments to low-risk assets.
