Foreign investors sell RM16.9 bil of local equities year-to-date

KUALA LUMPUR: Foreign investors have sold RM16.9 billion net of equities on Bursa Malaysia, year-to-date, MIDF Research said.

However, compared with six other Asian markets, Malaysia still has the fourth smallest foreign fund net outflow during the period.

The research house said offshore investors disposed of RM270 million net of local equities last week – marking the 21st consecutive week of foreign net selling – compared with RM339.4 million in the preceding week.

“In terms of participation, retail and institutional groups recorded a weekly increase in their average daily traded value (ADTV) by 37.6% and 34.2%, respectively.

“The foreign investors experienced a weekly increase in their ADTV by 29.1% to reach RM1.3 billion, which was above the healthy level of RM1 billion,” it said.

Overall, the FBM KLCI rose by 2.5% for the week to settle at 1,591.84, while the ringgit appreciated 0.5% against the US dollar to reach RM4.26 during the week.

Major equity markets worldwide continued to be in positive territory last week on prospects of an economic recovery following the easing of Covid-19-triggered restrictions.

“However, the foreign fund flow in markets that we tracked suggest that the gains were domestic-led,” MIDF Research said.

Meanwhile, oil benchmark Brent crude rose 1% to US$43.24 last Friday, driven by prospects of a Covid-19 vaccine and treatment by Gilead and Moderna as well as falling initial jobless claims in the US.