KUALA LUMPUR, Sept 23 — Equity outflow from local bourse remained the lowest amongst Asean’s peers due to continued uncertainty in the global economy.

According to MIDF Research, based on data from Bursa Malaysia, foreign investors sold RM249.3 million net of local equities last week, which entailed 25 weeks of foreign net selling so far.

“However, for the month of September, international investors have thus far sold RM335.8 million net, the lowest amongst its Asean peers. On a year-to-date basis, international funds have taken out RM7.68 billion worth of local equities from Bursa,” it said in its weekly fund flow report. 

It added that the market started on a positive note last week after an extended weekend as international funds snapped up RM56.8 million net on Tuesday, lifting the local bourse 0.2 per cent higher to settle at 1,604.3 points, the highest close in five trading days. 

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“The entrance of foreign funds into stocks listed on Bursa bucked the trend as other markets experienced foreign net outflows following the drone attack on Saudi Arabia’s oil facilities,” it said. 

It also added that the majority of equity markets worldwide ended mixed last week following the interest rate decision from the US Federal Reserve.

“Last Wednesday saw a foreign net outflow of RM40.5 million net as the anticipation of the Federal Reserve’s decision on interest rates outweighed the positivity from Saudi Arabia’s partial restoration of oil its production.

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“The pace of foreign net outflow more than doubled to hit RM97.6 million net on Thursday following the second rate cut this year by the Federal Reserve, which caused the local stock market barometer followed suit to decline the most during the week by 0.30 per cent,” it said. — Bernama