Foreign net selling reaches RM1.04 bn in a week on Bursa Malaysia
MIDF Research’s Adam M Rahim told the media that, “Sentiment was partially dampened by China’s retaliation towards President Trump’s latest tariff threat by letting the Yuan tumble to the weakest level in more than a decade. It is notable that the heavy foreign net outflow on Monday was in conformity with other regional peers under our coverage.” Foreign net selling peaked on Monday as foreign investors sold equities worth RM357.0 million in a single day. However, the pace of foreign net selling slowed down a little to RM219.9 million on Tuesday. The level of foreign net outflow increased to RM269.5 million the next day because of interest rate cuts by central banks across the Asia Pacific to counter the risks in the global economy. On Thursday, foreign net selling substantially dropped to RM30.7 million due to Japan’s decision to allow exports of semiconductor manufacturing material to South Korea. The foreign net outflow from Malaysia so far this year is around RM6.01 billion which is equivalent to 51 percent of last year’s total foreign net outflow. The recent exodus can also be attributed to the US government’s decision to halt US companies from doing business again with Huawei. The US’ decision comes after China announced that it will stop buying farm produce from the US. Bursa Malaysia remained in the red across board at mid-morning due to continuous sell-offs. Earlier today, the FTSE Bursa Malaysia KLCI dropped 18.60 points to 1,596.45 from Friday’s close of 1,615.05.