Foreign investors extend selling streak to 9 weeks with RM1bil outflow
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KUALA LUMPUR: Foreign investors extended their selling streak on Bursa Malaysia for the ninth consecutive week, registering outflows of RM1.07b last week.
“They recorded net selling every day last week, with the highest outflow recorded on Tuesday at RM368 million,” the MIDF Amanah Investment Bank Bhd unit said in its fund flow report for the week ending Dec 20, 2024.
This was followed by Friday (RM235.2 million), Monday (RM176.3 million), Wednesday (RM150.2 million), and Thursday (RM135.4 million).
“The sectors that recorded the highest net foreign inflows were property (RM42.6 million), technology (RM40.2 million), and plantation (RM29.4 million),” MIDF Research said.
Meanwhile, the sectors that recorded the highest net foreign outflows were financial services (RM500.5 million), healthcare (RM168.9 million), and utilities (RM160.5 million).
In contrast, local institutions continued to support the local bourse for the ninth consecutive week, with net purchases totalling RM1.05 billion in domestic equities.
This was an increase from the net inflow of RM995.5 million in the preceding week.
On the other hand, local retailers turned net buyers of domestic equities, recording RM13.8 million in net purchases after four consecutive weeks of net selling.
“The average daily trading volume (ADTV) showed growth across all investor categories last week,” MIDF said.
“Local retail investors and foreign investors recorded double-digit increases, rising by 10.2% and 20.9%, respectively; while local institutional investors saw a more modest increase of 5.7%,” it said.
Across Asia, foreign investors maintained a net selling trend last week across the eight Asian markets tracked by MIDF, with total outflows of US$4.7 billion (RM21.11 billion), a figure which is 2.6 times higher than the previous week.
“The majority of the outflows were concentrated in Taiwan and South Korea,” the research house said.
Taiwan recorded the highest net foreign outflow at US$2.24 billion (RM10.06 billion), marking the second consecutive week of net selling, after Taiwan’s central bank maintained its policy interest rate at 2% and raised its 2024 economic growth forecast to 4.25% from 3.82%.
Meanwhile, it said foreign investors shifted to net selling in South Korea at US$1.61 billion (RM7.23 billion), a sharp reversal from the net buying of US$28.6 million (RM 128.48 million) recorded the previous week, as the country’s central bank chief stated that the economic impact of political turmoil stemming from martial law will be limited, following Parliament’s vote to impeach President Yook Suk Yeol.
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