KUALA LUMPUR (March 24): Foreign investors remained net sellers across eight Asian markets, with total outflows reaching US$564.9 million (RM2.51 billion) last week.

According to MIDF Amanah Investment Bank Bhd's latest fund flow report, titled “From Growth to Gridlock”​​​​, South Korea led the region with a net inflow of US$1.68 billion, marking a sharp reversal after nine consecutive weeks of outflows. 

“The only countries that recorded net foreign inflows were South Korea and the Philippines, while other regional markets continued to experience outflows,” the bank said.

The Philippines recorded a net inflow of US$40.1 million for the third consecutive week, following its securities regulator's signal of openness to reducing the 20% minimum public float requirement for initial public offerings, potentially attracting more listings.

“This initiative is part of efforts to encourage more listings on the Philippine Stock Exchange, which has struggled with low trading volumes and a lack of new listings,” MIDF Amanah said. 

Conversely, Indonesia registered its ninth consecutive week of foreign outflows, amounting to US$432.1 million amid economic and trade fluctuations.

“Indonesian stocks fell 1.6% last Friday, capping a challenging week as concerns over the country's fiscal health, government policies, and declining demand dampened investor confidence. The benchmark index has fallen over 11% this year, making it one of Asia's worst performers.

“The rupiah also weakened, marking its second consecutive weekly decline. Market uncertainty grew due to the potential impact of US trade tariffs, prompting investors to seek safer assets like gold. Most Asian currencies weakened, while regional stock markets showed a mixed performance,” the bank shared.

In Malaysia, the plantation sector recorded net foreign inflows of RM2.4 million last week, while foreign investors extended their selling streak on Bursa Malaysia for the 22nd consecutive week, with a net outflow of RM1.25 billion.

“The net selling value declined slightly from RM1.34 billion in the previous week. Foreign investors were net sellers on every trading day, with last Wednesday witnessing the heaviest outflow at RM484.23 million. On other days, outflows ranged from RM155.34 million to RM326.40 million,” the report stated.

In contrast, local institutions continued to support the market, marking their 22nd consecutive week of net buying, with an inflow of RM1.23 billion.

The financial services sector recorded the highest net foreign outflow at RM609.7 million, followed by industrial products and services (-RM167.9 million) and consumer products and services (-RM148.4 million).

Local retail investors extended their net buying streak for a sixth straight week, recording an inflow of RM25.5 million.

Meanwhile, the average daily trading volume declined across most segments except for foreign investors.

Local institutions saw a decline of 11.9% and retail investors a fall of 14.8%, while foreign investors recorded an increase of 27.4%.

Uploaded by Tham Yek Lee