Kuala Lumpur: Foreign investors extended their net selling in Asian markets for a third consecutive week, recording an outflow of RM6.21 billion, or US$1.47 billion, significantly higher than the previous week’s outflow of US$170.8 million (US$1=RM4.23).
According to BERNAMA News Agency, MIDF Amanah Investment Bank Bhd’s Fund Flow Report for the week ended June 6, 2025, indicated that only South Korea and the Philippines registered net foreign inflows, while all other countries experienced net outflows.
South Korea led the region with a robust net inflow of US$1.80 billion, continuing its foreign buying streak for two weeks. This occurred despite weak macroeconomic data showing its GDP growth remained flat year-on-year for the first quarter of 2025 and a 0.2 percent quarter-on-quarter contraction. The economic downturn follows political instability earlier this year, which included the imposition of martial law and the impeachment of former President Yoon Suk Yeol. Newly inaugurated President Lee Jae-myung swiftly introduced a US$22 billion emergency stimulus plan to tackle the economic challenges.
The Philippines recorded the second-highest inflow of US$9.8 million, reversing three consecutive weeks of foreign outflows. In contrast, Taiwan posted the largest net outflow in the region at US$1.72 billion, marking its third straight week of foreign selling. Geopolitical tensions have remained high as Taiwan accused China of conducting “highly provocative” joint combat readiness patrols, unsettling foreign investors.
India saw a reversal into a net outflow territory of US$1.02 billion, ending its brief period of foreign buying. The Reserve Bank of India unexpectedly cut rates by 50 basis points to 5.5 percent, aiming to support growth amid escalating US trade barriers. Indonesia experienced a net outflow of US$288.4 million, ending its three-week streak of inflows, following a weak GDP growth of 4.87 percent in the first quarter of 2025.
Vietnam posted a fourth straight week of foreign withdrawals with US$80.4 million in outflows. In a US visit, Vietnam signed US$3 billion worth of memoranda of understanding for agrifood imports to rebalance trade and encourage the US to reduce tariffs. Thailand experienced the smallest net outflow at US$72.7 million, extending its foreign selling streak to three weeks. The government introduced a US$405 million tourism stimulus package aimed at increasing visitor arrivals.
On the domestic front, MIDF Amanah reported that foreign net selling on Bursa Malaysia eased to RM338.7 million, smaller than the previous week’s outflow of RM1.02 billion. Foreign investors were net sellers on every trading day, with the largest outflow on Wednesday at RM162.8 million. The sectors with the highest net foreign inflows were telecommunications and media, technology, and property, while financial services, healthcare, and plantation recorded the highest outflows.
Local institutions continued buying, with net inflows of RM444.6 million, while local retailers reversed their buying streak, recording an outflow of RM57.3 million. The average daily trading volume saw a decline across local institutions, local retailers, and foreign investors.