[ad_1]
KUALA LUMPUR (Aug 30): Foreign investors continued to divest Malaysia shares from Aug 24-27, with net sales slightly widening to RM370.4 million from RM344.2 million the previous week.
Bank Islam Malaysia economist Adam Mohamed Rahim said Bursa Malaysia started last week on a weak note, as international funds dumped RM120.9 million worth of local stocks last Monday.
Speaking to Bernama, he said the benchmark FBM KLCI index closed 0.5% lower at 1,568.6 points on the same day, dragged down by bank stocks such as Public Bank Bhd, which fell 1.9%.
Last Tuesday, overseas net sales remained high at RM116.2 million despite news of the American biotech company Moderna Inc’s plan to provide 80 million doses of its experimental Covid-19 vaccine to the Union. European, as well as the decision of the United States and China. act to reaffirm your commitment to the phase one trade agreement.
On the home front, the positive news regarding the Covid-19 vaccine prompted a profit-taking from glove counters like Top Glove Corp Bhd and Hartalega Holdings Bhd, resulting in both counters contracting by more than 5%. the same day, Adam said. .
However, foreign investors made a modest return to Bursa Malaysia last Wednesday as they bought RM1.9 million net of local shares, breaking five consecutive days of sales.
By contrast, regional pairs such as the Philippine and Indonesian markets saw foreign net outflows during the day, as investors followed the example of lackluster Wall Street, following talks between the US and China on the status of a deal. meant to function as a truce in your trade. war.
Last Thursday, overseas net sales resumed at RM 135.2 million.
“Sentiment cooled after mainland China fired four missiles into the disputed South China Sea, which Beijing had claimed as its sovereign territory, but which the United States and other nations considered an international waterway,” Adam said.
In addition, he said investors had waited for a speech by US Federal Reserve (Fed) Chairman Jerome Powell, which highlighted the Fed’s new strategy of allowing inflation and employment to rise in a shift that is likely to will keep interest rates low for years to come.
Meanwhile, so far this year (YTD), Malaysia has seen a net foreign outflow of RM20.2 billion.
Compared to its ASEAN peers, Malaysia has the second largest net foreign outflow after Thailand, which recorded a YTD net foreign outflow of US $ 7.7 billion, Adam added.
Last Friday, Prime Minister Tan Sri Muhyiddin Yassin announced that Malaysia’s economy had started to show positive signs of recovery following the gradual reopening of businesses.
He also said that the government had decided to extend the Recovery Movement Control Order until December 31, 2020.
[ad_2]
