Foreign selling continues for 6th week


Foreign funds sold a net RM314.3 million worth of Malaysian equities last week, over three times the amount withdrawn the previous week, and marks the sixth consecutive week of sustained net selling.

MIDF Amanah Investment Bank Bhd’s report yesterday noted that the year-to-date net outflow from Malaysia has reached RM11.1 billion.

The participation rate among the various investor groups saw a decline across the board.

“The average daily traded value of foreign investors registered the smallest weekly drop of 10.7% after declining below RM1 billion to RM991 million,” it said.

Throughout the week, foreign funds withdrew on the back of China inflation and trade data, as well as British Prime Minister Theresa May’s postponement of a parliamentary Brexit vote.

This was followed by China’s plan to cut tariffs on US-made products, as well as its retail sales growth having posted the slowest pace since 2003, which thawed investors’ optimism. — TMR