FOREIGN INVESTORS DISPOSE OF RM135.6 MLN NET OF LOCAL EQUITIES LAST WEEK

By Anas Abu Hassan

KUALA LUMPUR, June 8 --  Foreign investors disposed of RM135.6 million net of local equities last week compared to RM190.2 million net inflow in the preceding week, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said.

He said foreign investors began the week on Monday, which was also the last trading day for the month of May, by acquiring RM60.4 million net of local equities to record a foreign net outflow of RM161.5 billion in May compared to RM1.1 billion in the previous month.

"The monthly foreign net selling streak has now reached its 23rd month," he told Bernama. 

However, the month of June had a bumpy beginning as foreign investors sold RM 41.1 million net of local equities on Tuesday, as it also marked the first day of the two-week Full Movement Control Order (FMCO) nationwide.

"Foreign funds then made a return to Bursa Malaysia on Wednesday to the tune of RM139.2 million net amid news that Axiata Group has teamed up with RHB Bank Bhd to apply for a digital bank licence.

"All of the sectoral indexes were in the green on Wednesday due to a firmer Brent crude oil price following an agreement reached by the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC partners to gradually ease production cuts amid expected higher crude oil demand," he added.

Adam said international investors became net sellers on Thursday when they withdrew RM61.2 million net as daily COVID-19 cases remained high, breaching above 8,000 cases on Thursday.

"Friday wreaked havoc as foreign funds dumped RM232.9 million net of local equities despite Malaysia administering 117,563 doses of vaccines on June 3, the highest ever since the vaccination programme started in February. 

"This somewhat dampened the sentiment regarding demand for rubber gloves in a post vaccination era, causing a sell-off in rubber glove sector," he said. 

Adam noted that on a year-to-date basis, foreign investors have taken out RM3.2 billion net of local equities from Bursa Malaysia compared to RM14.3 billion net sold during the same time frame last year.

-- BERNAMA