KUALA LUMPUR, June 9 (Bernama) -- Foreign investors extended their net selling in Asian markets for a third consecutive week, recording an outflow of RM6.21 billion, or US$1.47 billion, significantly higher than the previous week’s outflow of US$170.8 million (US$1=RM4.23).
MIDF Amanah Investment Bank Bhd’s Fund Flow Report for the week ended June 6, 2025, reported that only South Korea and the Philippines registered net foreign inflows, while all other countries saw net outflows.
South Korea led the region with a strong net inflow of US$1.80 billion, extending its foreign buying streak to two weeks, despite weak macroeconomic data showing its gross domestic product (GDP) growth flat on a year-on-year basis in the first quarter of 2025 (1Q 2025) and a 0.2 per cent quarter-on-quarter contraction.
The economic downturn follows political instability earlier this year, including the imposition of martial law and the impeachment of former President Yoon Suk Yeol.
“Newly inaugurated President Lee Jae-myung wasted no time in rolling out a US$22 billion emergency stimulus plan to address the economic malaise.
“Lee’s administration, backed by a strong parliamentary majority, is also racing to install a full cabinet while navigating legal probes into Yoon’s conduct, and the president has pledged swift fiscal intervention to aid households and jumpstart growth, which the Bank of Korea has revised down to 0.8 per cent for 2025,” the report said.
Meanwhile, MIDF Amanah noted that the Philippines recorded the second-highest inflow of US$9.8 million, reversing three consecutive weeks of foreign outflows.
Regarding outflows, Taiwan posted the largest net outflow in the region at US$1.72 billion, marking its third straight week of foreign selling.
MIDF Amanah opined that geopolitical tensions remained elevated as Taiwan accused China of conducting “highly provocative” joint combat readiness patrols involving 21 military aircraft and warships, and the continued escalation has put foreign investors on edge despite Taiwan’s strategic dominance in the semiconductor sector.
It stated that India reversed into a net outflow territory of US$1.02 billion, ending its single-week streak of foreign buying.
“The Reserve Bank of India surprised markets with a 50 basis points rate cut to 5.5 per cent, citing subdued inflation and the need to support growth amid escalating US trade barriers,” it said.
Indonesia experienced a net outflow of US$288.4 million, ending its three-week streak of inflows.
MIDF Amanah said the country’s weak 1Q 2025 GDP growth of 4.87 per cent prompted the government to roll out a US$1.5 billion stimulus package targeting tourism, social aid and cash transfers.
“Vietnam posted a fourth straight week of foreign withdrawals with US$80.4 million in outflows. During a US visit, Vietnam signed US$3 billion worth of memoranda of understanding for agrifood imports, seeking to rebalance trade and nudge the US toward reducing tariffs.
“Thailand posted the smallest net outflow at US$72.7 million, extending its foreign selling streak to three weeks. The government unveiled a US$405 million tourism stimulus package aimed at reviving visitor arrivals, particularly from China,” it added.
On the domestic front, MIDF Amanah said foreign net selling on Bursa Malaysia eased to RM3387.4 million, smaller than sharply the previous week’s outflow of RM1.02 billion.
Foreign investors were net sellers on every trading day, with outflows ranging from RM5.4 million to RM162.83 million, with the largest outflow recorded on Wednesday at RM162.8 million, followed by Tuesday at RM121.2 million.
MIDF Amanah said the top three sectors recording the highest net foreign inflows were telecommunications and media (RM16.4 million), technology (RM16.2 million) and property (RM8.0 million).
“The top three sectors that recorded the highest net foreign outflows were financial services (RM193.1 million), healthcare (RM130.9 million) and plantation (RM40.4 million),” it said.
Local institutions continued their buying activities, with net inflows amounting to RM444.6 million, while local retailers reversed their two-week buying streak, recording an outflow of RM57.3 million.
MIDF Amanah added that the average daily trading volume experienced a broad-based decline last week, with local institutions and local retailers seeing decreases of 8.1 per cent and 15.8 per cent, respectively, while foreign investors saw a plunge of 29.1 per cent.
-- BERNAMA
