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KUALA LUMPUR: Foreign funds withdrew a total of RM6.82bil from the local stock market in the first six months of 2018, according to MIDF Research.
"For the month of June, the amount of net outflows from Malaysia reached RM 4.93 billion, bringing the cumulative output of 1H18 in 2018 to RM6.82 billion net, offsetting more than half of Total net inflow of [10] RMB of the previous year
", said MIDF in its weekly report on the flow of funds.
"Nevertheless, Malaysia still has the second lowest output among the four asean markets we monitor after the Philippines since the beginning of the year," she adds.
For the week ended June 29, Bursa Malaysia continued to experience its ninth week of foreign attrition, albeit at a slower pace, mirroring markets elsewhere in Asia.
"Based on Bursa's preliminary data that excluded out-of-market transactions, the amount disposed of by foreign investors last week was less than RM1b at RM 705.4 million net," said MIDF
]. From Monday to Thursday, none of the days recording an attrition greater than RM 300mil net.
Monday had the highest net outflow during the RM291.4mil week as the escalation of the trade dispute between the United States and China fueled risk aversion. Despite a drop in overseas sales activities, the KLCI FBM fell again to 1665.68 points, the lowest closing since January 2017.
This is mainly due to the fact that the decline of Wall Street by the comments of President Trump's economic adviser, Larry Kudlow, on the US hard line on trade despite President Trump's more flexible stance.
For the first time in 37 days, foreign investors spun a total of RM259.4mil net on Friday, slamming a long episode of foreign attrition amid windowing activities.
MIDF stated that participation levels of foreigners, retailers and local institutions have been falling weekly.
were still considered healthy because the average daily value of trade (ADTV) still exceeded RM 800 million for retailers, RM2bil for local institutions and RM1bil for foreign investors.
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