PETALING JAYA: Foreign investors took out RM1.56 billion from Bursa Malaysia last month, bringing the foreign net outflow for the first quarter (Q1) to RM1.35 billion, according to MIDF Research.
In contrast, there was a foreign net inflow of RM2.2 billion in Q1’2018 ahead of 14th general election.
“Among the four Asean markets we monitor, Malaysia is still the nation with the second largest foreign net outflow after Thailand, which recorded a foreign net outflow of US$407.3 million or higher than RM1.6 billion in Q1,” the research house said in a note yesterday.
Foreign funds sold RM162.1 million net of local equities last week, the second lowest weekly foreign net outflow recorded so far this year.
“The foreign net inflow seen on Bursa was shortlived as international funds were back in selling mode,” said MIDF.
Offshore investors sold RM34.8 million net last Monday, coinciding with the 1.1% decline in the FBM KLCI as investors shifted to safer assets amid concerns of a US recession.
Nonetheless, it was notable that other Asian peers such as Taiwan and South Korea recorded larger foreign net outflows of more than US$90 million and steeper declines in their respective bourses.
International funds slowly entered into Bursa to the tune of RM23.9 million on Tuesday, the highest in six trading days, lifting the local bourse slightly by 0.1% to close at 1,650 points.
“Foreign net buying was also prevalent in the other six Asian markets we monitor following the possibility of major central banks easing to mitigate the impact of a slowdown in global economic growth,“ added MIDF.
Wednesday and Thursday saw foreign investors returning to selling mode, disposing of more than RM60 million net on both days.
Sentiment was rather muted on those days mainly due to the 14% year-on-year drop in profits of China’s major industrial firm in January and February this year, signalling a softening economic growth of the nation.
The level of foreign net selling declined to RM15.6 million on Friday as the latest round of US China trade discussions resumed. As such, there was an influx of foreign funds into China stocks which reached the largest in a day in almost four months.
Source: The Sun Daily