Foreign investors offload US$1.05bil in Asian equities


KUALA LUMPUR: Foreign investors were net sellers of Asian equities for the week ended Jan 2, 2025, offloading US$1.05 billion (US$1=RM4.06) across the eight markets tracked by MBSB Investment Bank Bhd (MBSB IB).

In its Fund Flow Report, MBSB IB said the bulk of the outflows came from India, South Korea, Malaysia, and Thailand, while the other four markets saw net inflows.

The sell-offs reflected profit-taking and concerns over regional economic indicators, as global market volatility weighed on investment sentiment.

MBSB IB said Taiwan saw the largest net foreign inflow last week at US$1.04 billion, marking its second consecutive week of inflows, while the Philippines saw a marginal net foreign inflow of US$4.4 million, snapping five consecutive weeks of outflows.

Meanwhile, Indonesia posted its 13th straight week of foreign inflows, with net inflows totalling US$124.4 million, while Vietnam recorded a second straight week of net foreign inflows, totalling US$61.8 million.

Foreign investors reversed course to become net sellers in South Korea, recording outflows of US$316.6 million. India recorded the largest net foreign outflow at US$1.72 billion last week.

In addition, foreign investors turned net sellers in Thailand, recording outflows of US$20.8 million after two consecutive weeks of inflows.

In Malaysia, foreign investors continued to be net sellers of domestic equities for a fourth straight week, with outflows of RM904.0 million, 65 per cent wider than the previous week.

Foreign investors were net sellers on every trading day, with the largest outflow recorded on Wednesday (RM270.0 million), followed by Tuesday (RM261.7 million), Friday (RM232.4 million), and Monday (RM140.0 million).

"The top three sectors that recorded net foreign inflows were Telecommunication & Media (RM16.6 million), Industrial Products & Services (RM14.8 million), and Technology (RM8.1 million).

"Meanwhile, the top three sectors that recorded net foreign outflows were Financial Services (RM482.8 million), Utilities (RM258.2 million), and Plantation (RM75.9 million),” it said.

MBSB IB said local institutions recorded net buying for the seventh consecutive week, with net inflows totalling RM924.1 million, while local retailers were net sellers for the fifth consecutive week, with a net outflow of RM20.0 million.

The average daily trading volume saw a broad-based increase: local retailers by 3.6 per cent, local institutions by 18.1 per cent, and foreign investors by 1.5 per cent, it added. - Bernama

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