By TMR

Foreign funds disposed RM310.1 million net worth of local equities last week, reducing their exposure on Bursa Malaysia for the fourth consecutive week.

MIDF Amanah Investment Bank Bhd noted the amount was more than double the amount drawn in the preceding week.

The research house noted in a report yesterday that last week started off with a foreign net inflow of RM34 million as China announced steps to ease funding strains of private companies to restore confidence within the economy, only to have it reversed by the highest foreign net outflow during the week worth RM138.7 million last Tuesday.

“This was in conformity with other regional peers, namely Korea and Taiwan which both experienced a heavy sell-off of more than RM1.67 billion,” MIDF said. The attrition tapered to RM52.4 million last Wednesday before going higher last Thursday to RM101 million.

MIDF added that the exodus ws in tandem with the sell-off on global markets following a rout in US technology stocks.

“With just three trading days left in October, the month has seen a total outflow worth RM1.56 billion bringing the year-to-date outflow to RM10.1 billion. Nevertheless, Malaysia still remains as the country with the second-lowest outflow among the four Asean markets we monitor,” MIDF said.