KUALA LUMPUR, June 28 (NNN-Bernama) — Foreign investors disposed of RM469.5 million net of local equities last week compared to RM75.7 million net bought in the preceding week.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim noted that the weekly disposal was the largest foreign net outflow in a period of nine weeks.
He said international investors dumped RM185.0 million net on Monday last week which coincided with the 1.1 per cent decline in the FTSE Bursa Malaysia KLCI (FBM KLCI) on the same day, the biggest daily drop seen since March 31, 2021.
“Foreign net selling on Tuesday declined slightly to the tune of RM142.2 million net as investors remained upbeat on the Celcom-Digi merger, making the Bursa Malaysia’s telecommunications and media index the biggest gainer at 2.3 per cent,” he told Bernama.
According to Adam, foreign investors continued to sell local equities for the third consecutive day on Wednesday albeit at a slower pace of RM61.8 million net before selling more on Thursday at RM79.8 million net as the overall sentiment remained depressed due to no signs of slowdown in COVID-19 new daily cases.
“Concerns about heightened inflationary pressures resurfaced in the market as two US Federal Reserve officials said a period of high inflation in the United States could last longer than anticipated, just a day after its chair, Jerome Powell, reassured that price pressures were manageable,” he added.
Nevertheless, the pace of foreign net selling substantially slowed down to RM0.7 million on Friday amid bottom-fishing activities combined with the news that the US President Joe Biden embraced a bipartisan Senate infrastructure deal which could propel US economic growth, said Adam.
Meanwhile, foreign net outflow in June to-date has seen a total outflow of RM783.6 million.
“With only three trading days left before the month ends, June is set to mark the 24th consecutive month of foreign net selling on Bursa should foreign investors continue to reduce their exposure in local equities.
“On a year-to-date basis, foreign investors have disposed of RM3.8 billion net of local equities this year,” added Adam.
— NNN-BERNAMA