KUALA LUMPUR (July 29): Foreign funds sold RM53.4 million of Malaysian equities on Bursa Malaysia, from a net outflow of RM6.9 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research's Adam M Rahim said this was the largest weekly foreign net outflow in six weeks.

"Bursa had a rough start to the week as foreign funds sold RM45.8 million net on Monday, coinciding with the 0.2% drop in the local bourse despite positive developments from the international trade front.

"President Trump on Monday met with chief executives of tech companies and agreed on making timely decisions on Huawei Technologies," he said.

Adam said nevertheless, international investors made a return the next day, acquiring RM50 million net of local equities.

He said foreign funds, however, moved to the sidelines on Wednesday, selling RM5.6 million net ahead of the European Central Bank's (ECB) meeting which would likely signal further easing.

"Thursday then saw the highest level of foreign net buying for the week at RM58.3 million, lifting the local bourse by 0.3% to close at 1,657 points.

"The foreign net inflow was in conformity with other regional peers, namely South Korea, Taiwan, Thailand and the Philippines after US equities climbed to record highs overnight," he said.

Adam said Friday turned out be hectic as foreign net selling surged above RM100 million to RM110.3 million, a level not seen in 10 trading days.

"Much of the scepticism on Friday was stoked by the dovish signal hinted by the ECB as it is preparing to cut short-term interest rates and possibly restart its giant bond-buying program to buffer the eurozone economy.

"With two more trading days left, July is set to be a month of foreign net inflow, as international investors have so far bought RM254.8 million net of local equities," he said.

Adam said on a year-to-date basis, the foreign net outflow from Malaysia stands at RM4.41 billion.

"In contrast, the other six Asian markets we monitor (Korea, Thailand, Indonesia, India, Taiwan and the Philippines) have seen a foreign net inflow so far for the year with India having the largest," he said.