Foreign investors offload local equities worth RM16.9b

KUALA LUMPUR 13 July - Foreign investors sell RM16.9 billion of local equities net on Bursa Malaysia, year to date. 

Despite the big number, Malaysia still has the fourth smallest foreign fund net outflow compared to other six Asian markets. 

Meantime, major equity markets worldwide continued to be in positive territory last week on prospects of an economic recovery following the easing of Covid-19-triggered restrictions.

MIDF research found, the foreign fund flow in markets that it tracked suggested that the gains were domestic-led.

“Offshore investors disposed of RM270 million net of local equities last week, marking the 21st consecutive week of foreign net selling as compared with RM339.4 million in the preceding week.

“In terms of participation, retail and institutional groups recorded a weekly increase in their average daily traded value (ADTV) by 37.6% and 34.2%, respectively,” it said.

The foreign investors experienced a weekly increase in their ADTV by 29.1% to reach RM1.3 billion, which was above the healthy level of RM1 billion.

Read : Malaysia’s stocks may break 1,600 level

As of 9.10 am, FBM KLCI opened at 1,596.40, 4.56 points higher.

The upward trend is in line with the Asian market as it surges by dint of optimism for a treatment of the COVID-19. 

Last Friday, the European and U.S. markets marked higher, which reflects the Asian markets to open in similar fashion. 

Meanwhile, oil benchmark Brent crude rose 1% to US$43.24 last Friday, driven by prospects of a COVID-19 vaccine and treatment by Gilead and Moderna as well as falling initial jobless claims in the US. - DagangNews.com