Net foreign outflow at RM903.2m

Offshore investors pulled out from Malaysia’s equity market at a relatively faster pace last week, marking their fourth straight week of exit, says MIDF Research.

The research firm said based on data from Bursa Malaysia, foreign funds sold RM903.2 million net of local equities last week, the fastest pace in 21 weeks.

Foreign selling occurred on every single day of the week, stretching the daily selling streak to 12 days, which matched the period between July 2 and July 17 last year, it added.

“Foreign net outflow reached RM198.6 million on Monday before swelling to RM263.3 million on Tuesday, the largest in a day so far this year,” said MIDF Research in a note.

“Nonetheless, the massive selldown was in sync with other Asian peers, namely South Korea, Indonesia and Taiwan, after an overnight selloff on Wall Street amid an unexpected 0.6 per cent fall in United States construction spending for December 2018,” it added.

MIDF Research said the level of foreign selling gradually tapered over the next two days to reach RM105.2 million on Thursday.

The decreased foreign selling was mainly due to the news that the Chinese government had pledged to enact stimulus measures to boost the economy.

However, a heavy selloff continued on Friday at a tune of RM193.3 million net.

Losses across Asian markets including Malaysia accelerated following the 20.7 per cent year-on-year slump in China’s exports last month, it added.

In the first six trading days of this month, foreign investors sold RM1.06 billion net.

Regionally, MIDF Research said Malaysia recorded the highest foreign net outflow among the four Asean markets it monitored. Indonesia continued to lead with a year-to-date net foreign inflow of US$817.9 million.

The massive selldown was in sync with other Asian peers, namely South Korea, Indonesia and Taiwan. MIDF Research