Bursa Malaysia Experiences A Sudden Decline, Foreign Investors Start Shifting To Safe Assets


Bursa Malaysia's equity losses by foreign investors continued for the seventh consecutive week to RM373.5 million net despite the shortened trading week.

Net sales of approximately 11% compared to last week were successfully collected within three trading days only due to the Hari Raya Aidilfitri holiday celebration.

According to MIDF Research, weak sentiment on Wall Street amid stronger-than-expected inflation data weighed on the market over the past week. That has prompted further uncertainty on interest rate cuts by the Fed.

Meanwhile, the market is now divided on the prospective outcome of the July meeting with a 43.5% probability of a hold and a 44.5% probability of a 25 point cut.

Over the course of the week, Asian markets mostly experienced net selling of foreign funds with five of the eight stock exchanges tracked by MIDF experiencing net outflows.

On Bursa Malaysia, the main sectors that saw net sales by foreign investors were financial services of RM285.9 million, utilities of RM85.4 million and consumer service products of RM52.7 million.

The sectors that saw the most net inflows were real estate which amounted to RM75.3 million, transport and logistics RM26.8 million and construction RM16.5 million.

Local institutions remained net buyers of domestic equities for the seventh consecutive week to a total of RM430.7 million.

Local retailers were net sellers for the fifth consecutive week with net sales of RM57.1 million.

In terms of participation, the average daily trading volume (ADTV) saw a decrease among local retailers (3.1%) and local institutions (15.2%) while experiencing an increase among foreign investors (3.1%).