OFFSHORE investors continued to reduce their exposure to stocks listed on Bursa Malaysia for the 17th week, retracting RM539.2 million net from local equities last week. 

However, in its fund flow report today, MIDF said compared to six other Asian markets, Malaysia recorded the fourth smallest foreign net outflow on a year-to-date basis at RM15 billion. 

Stocks which saw the highest outflow were Top Glove, TIME dotcom and AMMB, while finance-related stocks attracted the most inflow for the week. 

“As markets reopened from the long weekend, international investors took out RM250.6 million net of local equities. Nevertheless, foreign funds came into the local market at a tune of RM1.4 million net on Wednesday, snapping the 11-day selling spree on Bursa.

“The modest entry of foreign funds into Malaysia on Wednesday coincided with the local bourse settling at 1,575.3 points – the highest close since late January 2020,” it said. 

The risk-on sentiment was spurred by the implementation of the recovery movement control order  (RMCO), which is expected to end on August 31.

However, the foreign net buying in the local market was short-lived as international funds sold RM274.6 million net on Thursday, as investors’ appetites were adversely affected by the United States (US) Federal Reserve’s (US Fed) gloomy projection on the country’s economy.

On a weekly basis, the FBM KLCI declined by 0.7% after settling at 1,546.0 points, while the  Ringgit appreciated by 0.1% against the greenback at 4.2635. – Bernama, June 15, 2020.