Foreign investors ended a two-week buying streak in Asian markets when net outflows worth $1.71 billion were recorded last week.
Data showed that the bulk of the outflows occurred in Taiwan, while markets such as India, Korea and Indonesia still recorded positive inflows.
In Malaysia, foreign investors were net sellers for the second consecutive week with a net outflow of RM962.8 million.
Selling activity by foreign investors occurred on every trading day, with Monday recording the highest outflow of RM393.5 million.
Only three sectors recorded net foreign inflows, namely consumer products and services, technology and construction.
The financial services sector recorded the largest outflow of RM835.5 million followed by the healthcare and utilities sectors.
Despite the increase in foreign outflows, daily trading volumes by foreign investors and local retail continued to show significant increases.
The average daily trading value of foreign investors increased by 18.7% while that of local retail investors increased by 26.7%.
Analysts explained that this withdrawal move reflects investors' cautious attitude towards global uncertainties and expectations of changes in the world's major monetary policies.
This phenomenon also indicates that Asian markets are entering a more challenging phase, with capital movements expected to remain sensitive to global sentiment and geopolitical risks.
