KUALA LUMPUR (Nov 25): Foreign investors took out RM187.2 million net of local equities last week compared to RM408.5 million net sold in the preceding week, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research's Adam M Rahim said Bursa Malaysia began the week on the right foot as international funds acquired RM61.4 million of local equities on Monday, lifting the local bourse by 0.6% to close at 1,604.4 points.

"The foreign net inflow later surged to RM136.6 million net on Tuesday, the highest in more than two weeks.

"Sentiment was better following a meeting between President Trump and Fed Chair Jerome Powell, which was deemed good and cordial, in addition to Huawei Technologies given the green light by the US to continue exporting with US companies for another 90 days," he said.

Adam nevertheless said the two-day buying streak ended on Wednesday when foreign investors disposed of RM106.4 million net of local equities.

He said foreign net selling momentum then gained on Thursday to reach RM237.3 million net, the highest since early October 2019.

"Investors' nerves were frayed after US lawmakers passed a bill supporting the rights of Hong Kong residents and potentially derail trade negotiations between the US and China.

"The pace at which foreign investors sold local equities slowed down on Friday to a level below RM100 million net at RM41.5 million," he said.

Adam said this follows President Xi Jinping's remarks that China insisted on hammering out a deal with the US but was not afraid to fight back if necessary.

He said with a week left before November ends, the month has so far seen a foreign net outflow of RM781.2 million.

"Meanwhile on a year-to-date basis, foreign funds have taken out RM9.17 billion of local equities from Malaysia, making up 78.4% of last year's total foreign outflow of RM11.69 billion," he said.

Adam said in terms of participation, foreign investors saw an increase in average daily traded value (ADTV) of 12.9% but was still below the RM1 billion mark at RM995.1 million.