Foreign funds upped the ante in disposing of stocks listed on Bursa, selling RM1.13bil of local equities last week, the highest in five weeks, according to MIDF Research.
“In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third smallest foreign net outflow on a year-to-date basis.
“The year-to-date foreign outflow from Malaysia came to RM10.21bil,” MIDF said in its weekly fund flow report.
The research house said Bursa Malaysia started the week on a sombre note as foreign investors pulled out RM215.4mil net of local equities.
It said this was despite news that China slashed its benchmark lending rate for the second time this year to boost the nation’s economy.
MIDF said foreign net selling activity intensified on Tuesday, reaching RM287.9mil, a level not seen in more than a month.
Wednesday then saw a slight slowdown in foreign net outflow to a tune of RM186.6mil as interest in rubber glove manufacturer stocks helped outweighed the overall selling activity amongst offshore investors.
The research house said the momentum of foreign net selling was little changed at RM198.0mil on Thursday while foreign net outflow jumped to RM240.6mil on Friday.
In terms of participation, MIDF said foreign investors saw an 8% weekly increase in its average daily traded value (ADTV), the smallest amongst other investor groups.
Nevertheless, the absolute ADTV of foreign investors remained healthy above the RM1bil mark.