Friday 29 Mar 2024
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KUALA LUMPUR (May 6): Foreign funds sold RM275.7 million net of local equities last week, almost four times more than the RM72 million disposed of 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 Monday recorded a foreign net outflow of RM96.3 million net as investors waited for a slew of data from the US Europe and China which may shed some light on the prospects of global economic growth.

"Foreign net selling peaked during the week on Tuesday at RM102.9 million net as Malaysia and other regional markets were closed on Wednesday.

"Sentiment was also partially affected by the lower-than-expected Purchasing Managers' Index in China," he said.

Adam said as markets reopened on Thursday, foreign investors continued to take out local equities at a tune of RM88.8 million net.

He said the trend of foreign net outflow was in conformity with other regional peers, namely Thailand and Indonesia.

"International funds made their way back to Bursa on Friday as they snapped up RM12.2 million net of local equities, bringing the five-day selling streak to an end.

"Performance of the local bourse on that day was partly influenced by Malaysia's April trade surplus of RM14.4 billion, the largest gain since October 2018," he said.

Adam said for the month of April, Malaysia recorded a foreign net outflow of RM1.49 billion, marking the third consecutive month of foreign net selling.

He said this brings the foreign outflow from Malaysia for the first four months to RM2.76 billion compared to a foreign net inflow of RM3.71 billion recorded during the same period last year.

"Among the four ASEAN markets we monitor, Malaysia retains its position as the nation with the largest foreign net outflow.

"Meanwhile, amongst the seven Asian markets we track, India is the nation with the largest foreign net inflow nearing US$10.0 billion as the general election is still ongoing until May 23, 2019," he said.

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