Kuala Lumpur: Foreign investors continued their trend as net sellers across eight Asian markets last week, culminating in total outflows of US$564.9 million. The withdrawal of foreign capital was most pronounced in these markets, with local institutions stepping up to provide much-needed support.

According to BERNAMA News Agency, MIDF Amanah Investment Bank Bhd’s Fund Flow Report, titled ‘From Growth to Gridlock’, highlighted South Korea’s significant net inflow of US$1.68 billion. This marked a notable change after nine consecutive weeks of outflows. South Korea and the Philippines were the only countries that saw net foreign inflows during this period.

The Philippines experienced a net inflow of US$40.1 million for the third week in a row. This was largely in response to the local securities regulator indicating a possible reduction in the 20 per cent minimum public float requirement for initial public offerings, a move aimed at increasing listings on the Philippine Stock Exchange.

In stark contrast, Indonesia faced its ninth consecutive week of foreign outflows, totaling US$432.1 million. This was attributed to economic and trade uncertainties. Indonesian stocks dropped by 1.6 per cent last Friday, influenced by fiscal concerns and declining demand, which have collectively led to an over 11 per cent decline in the benchmark index this year.

Malaysia saw a mixed performance, with the plantation sector recording net foreign inflows of RM2.4 million. However, foreign investors continued their selling spree on Bursa Malaysia for the 22nd week, with a net outflow of RM1.25 billion. Local institutions, on the other hand, marked their 22nd week of net buying, with an inflow of RM1.23 billion, providing a counterbalance to the foreign withdrawals.

The financial services sector in Malaysia experienced the highest net foreign outflow at RM609.7 million. The industrial products and services sector, along with consumer products and services, also faced significant outflows. Local retail investors maintained their net buying streak for the sixth week, contributing an inflow of RM25.5 million.

Average daily trading volumes showed a decline across most segments except for foreign investors, who saw an increase in trading activity. Local institutions and retail investors experienced declines in trading volume, underscoring the shifting dynamics in the market landscape.