KUALA LUMPUR (Nov 11): Foreign investors' net sale of Malaysian shares amounted to RM237.2 million last week after they bought and sold RM2.43 billion and RM2.67 billion worth of equities respectively.

MIDF Amanah Investment Bank Bhd analyst Adam M. Rahim wrote in MIDF's fund flow report today it was rather hectic last week as international funds reduced their stakes in Malaysian equities to end three consecutive weeks of foreign net buying of shares traded on Bursa Malaysia.

"Bursa had a rough start to the week as foreign investors disposed (of) RM65.0 million net of local equities on Monday. In contrast, the local bourse closed 0.6% higher above 1,600 points amidst better-than-expected US jobs data released in the preceding week. Foreign net selling activity slowed down to -RM22.0 million on Tuesday following reports that China [was] reviewing locations where President Xi Jinping would be willing to meet (US) President (Donald) Trump to sign the first phase of a trade deal.

"Foreign net outflows regained momentum on Wednesday to reach -RM42.6 million as Beijing insisted on removing some tariffs before agreeing to sign an interim trade deal with Washington. Optimism returned to Bursa on Thursday with a foreign net inflow of RM85.4 million as Beijing and Washington decided to roll back tariffs on each other's goods in stages as negotiations continue to resolve the more than year-long trade war. The local stock barometer followed suit to end 0.4% higher at 1,609.3 points, the highest close since late August 2019," Adam said.

For Friday, Adam said today the excitement was short-lived as foreign investors fled Bursa at a tune of RM193.1 million, the largest foreign net outflow in more than a month.

He said sentiment was affected by a report that some US White House officials opposed the lowering of tariffs to gain a partial trade deal with China.

Foreign funds had been net sellers of Malaysian shares year-to-date. Adam said on a year-to-date basis, foreign funds had sold RM8.57 billion of local equities.

"The month of November has so far seen a foreign net outflow of -RM185.5 million," he said.

In 2018, foreign net outflow from Malaysian shares amounted to RM11.69 billion, according to MIDF.