According to MIDF Research, the amount sold was nearly five times the amount withdrawn in the preceding week.
“International investors entered into Bursa on Monday to the tune of RM65.2 million net, extending the foreign net buying streak from last week to three days with much of the optimism coming from Wall Street’s Black Friday spending, which surged to a record in addition to the stabilisation of Brent crude oil price reaching US$60 (RM249.60) per barrel.
“However, there was an exodus of foreign funds on Tuesday, as international investors offloaded RM277.1 million, the largest in a day since early November this year, coinciding with the FBM KLCI’s biggest daily drop since Oct 23, 2018,” it said in its fund flow report.
Investor sentiment was tempered on Tuesday as US President Donald Trump intends to expand trade tariffs on all remaining imports from China and Genting Malaysia Bhd’s legal dispute with Walt Disney and Twenty-First Century Fox Inc.
MIDF Research noted that the level of foreign net selling shrank to RM32.7 million on Wednesday, before seeing a measurable net inflow of US$84.5 million following the speech by Federal Reserve chairman Jerome Powell.
The total foreign net outflow stood at RM718.9 million in November, almost half of the RM1.42 billion offloaded in October, bringing the year-to-date foreign outflow to RM10.67 billion.
MIDF Research noted that the year-to-date foreign outflow for Malaysia is not as high compared with other Asean peers it tracks, namely Thailand and Indonesia, both of which have seen year-to-date outflows larger than US$3 billion.
The average daily traded value for foreigners stood below RM1 billion for the third week in a row, a level deemed not active.
Source: The Sun Daily