KUCHING: Malaysia has ended 2018 with a total foreign outflow of RM11.65 billion, setting the record for the largest yearly foreign net outflow since 2015 which saw –RM19.49 billion worth of foreign outflow.
In its weekly fund flow report, MIDF Amanah Investment Bank Bhd (MIDF Research) detailed that this outflow has offset last year’s foreign net inflow of RM10.33 billion, causing Malaysia back in the position of the Asean nation with the second lowest year-to-date outflow.
The report said on Christmas Eve (Dec 24) foreign net selling had declined to RM13.0 million after a heavy bout of selling which saw the previous three trading days seeing foreign net outflow standing above RM100 million.
“The slowdown in foreign net selling was partly attributable Beijing’s pledge to support the economy in the wake of the global trade tribulation by slashing taxes and ensuring liquidity is maintained,” explained the report.
On boxing day (Dec 26), foreign funds pulled back further at RM60.6 million likely due to the unnerving political turmoil in the U.S where President Trump voiced hostility towards the US Federal Reserve’s chairman.
“This is in conformity with the three other Asean peers we monitor. Nonetheless, the level of foreign net selling on Thursday retreated to a lower amount of -RM28.1 million amidst the overnight jump in Wall Street following a report that US holiday sales hit a six-year high.
“Friday’s pace of foreign net selling was little changed at RM26 million net as the euphoria on the US’s consumer strength evaporated with no catalyst in sight,” said the report.
Overall participation rate amongst various group of investors was on a decline across the last trading week of 2018 (December 24-28).
The average daily traded value (ADTV) of foreign investors registered the largest weekly drop of 58.7 per cent after declining below RM1 billion to RM475 million.
“We note that the weekly ADTV for foreigners was also the lowest in the last week of 2017,” added the report.
Source: Borneo Post Online