KUALA LUMPUR – Foreign selling narrowed to RM86.6 million on Bursa Malaysia from Monday to Friday last week, compared with RM268.7 million sold in the whole of the preceding week.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the local exchange began the week on an auspicious note as international investors mopped up RM169.5 million net of local equities on Monday amid speculation that a Covid-19 vaccine may soon be available.
“In fact, the head of the US government (deparment) tasked with getting the vaccines noted that vaccinations against Covid-19 in the US will ‘hopefully’ start in less than three weeks,” Adam said today.
He said the tables turned on Tuesday as offshore investors sold RM106.0 million net of local equities as anxiety built up ahead of the parliamentary sitting to approve Budget 2021.
Wednesday then saw foreign funds entering Bursa Malaysia to the tune of RM25.1 million net as sentiment was boosted by US President Donald Trump’s decision to cooperate with a transition of power to president-elect Joe Biden, he said.
Adam said foreign investors later decided to withdraw RM17.2 million net of local equities on Thursday as China’s economic recovery stabilised in November, underpinned by solid global demand for exports ahead of the year-end holiday period and the stock market’s climb to its highest since 2015.
“The momentum of foreign net selling accelerated to RM158.1 million of Friday amid profit-taking activity following the local bourse’s 0.9% rally to close at 1,612.1 points the previous day, the highest close since December 2019,” he added.
On a year-to-date basis, Adam said foreign investors had taken out RM23.46 billion net of local equities this year.
In terms of participation of foreign investors, he said the average daily traded value from Monday to Friday remained robust at RM1.35 billion.
Among its Asean peers, he said Malaysia recorded the second largest year-to-date foreign outflow after Thailand. – Bernama, November 30, 2020
