Foreign selling on Bursa Malaysia continues with net outflow of RM761.4mil

KUALA LUMPUR The outflow of foreign funds from Bursa Malaysia continued for a seventh straight week, with a weekly net outflow of RM761.4mil.

An exodus of foreign funds has been seen across key Asian markets, although MIDF Research reported there was net foreign buying of Asian equities in the eight markets it monitored for the first time in 10 weeks.

“The reversal in net buying activities was primarily attributable to the large inflows recorded in India and Taiwan. All countries, except India, Taiwan, and Indonesia experienced a net outflow,” it said in its breakdown of foreign fund flows in Asia’s biggest markets.

Meanwhile, the sectors on Bursa Malaysia that saw the highest net foreign selling were financial services (RM594.1mil), utilities (RM475.9mil) and transport and logistics (RM53.8mil).

The sectors that registered the most net foreign inflows were healthcare (RM238mil), plantations (RM93.1mil) and industrial products and services (RM72.8mil).

Local institutions continued to support the loca bourse amid the foreign selling pressure, with a weekly net inflow of RM1.06bil.

“There were no outflows in the entire week from this investor class,” said MIDF.

Local retailers, meanwhile, were net sellers on everyday of the week for a net outflow of RM299.9mil.

The average daily trading volume (ADTV) showed a reduction across all investor categories except local retail investors.

Foreign investors and local institutional investors recorded a decrease of 25.7% and 6.6% respectively, while local retail investors saw an incline of 8.9%.