PETALING JAYA: Foreign funds withdrew RM1.05 billion net funds from local equities last week, the largest weekly foreign net outﬂow in 16 weeks, amidst equity markets worldwide swimming in the red overarched by worries of rising US treasury yields.
The 10-year US Treasury yield hit its highest since 2011.
International investors, who were net sellers on every single day of the week, sold RM327.9 million net, the highest in a month, after Wall Street suffered its biggest loss in eight months overnight as technology companies remained a drag, combined with worries of increasing interest rates.
The total foreign net outﬂow from Malaysia as of last Friday stood higher at RM9.7 billion, offsetting about more than 90% of last year’s RM10.3 billion foreign net inﬂow.
Malaysia however, is still the market with the second lowest year-to-date foreign net outﬂow amongst the four Asean markets MIDF Research tracks.
Participation amongst foreign investors, local institutional funds and investors in the retail market were strong last week as their weekly average daily traded value were higher than 20% compared to the preceding week.
Tenaga Nasional Bhd registered the highest net money inﬂow of RM11.02 million last week. Its share price underperformed with a 5.44% loss against the FBM KLCI, which declined 2.61% during the week under review.
Gamuda Bhd saw the largest net money outﬂow of RM17.83 million last week. Its stock price lost 26.79%, substantially underperforming vis à-vis the FBM KLCI which lost 2.61% during the review week.
In Bangkok, offshore funds ramped up their selling activity by more than 50% times to US$701.7 million (RM2.92 billion) net, the largest foreign net attrition seen amongst the four Asean markets it tracks.
Source: The Sun Daily