PETALING JAYA: Foreign investors extended their net selling in Asian markets for a third consecutive week, with a significant net outflow of US$3.84 billion (RM16.84 billion) during the week ended April 18, 2025, according to MIDF Amanah Investment Bank Bhd’s fund flow report. Among the tracked markets, only the Philippines and India recorded net foreign inflows.
India saw the largest regional inflows, with US$990.4 million (RM4.35 billion) reversing a two-week streak of net selling. This rebound was attributed to easing inflation, which fell to a 67-month low of 3.34% in March 2025, mainly due to deflation in food prices. Additionally, the country’s resilient domestic growth outlook, with forecasts of a normal monsoon and a 6.5% growth target from the Reserve Bank of India, boosted investor confidence. MIDF also noted progress in India’s trade talks with the US, including potential removal of import duties on energy products like ethane and liquefied petroleum gas, further enhancing bilateral ties.
The Philippines ended a three-week selling streak with a modest net inflow of US$6.5 million (RM28.51 million). In contrast, Indonesia saw a net outflow of US$1.26 billion (RM5.52 billion), marking its second consecutive week of foreign selling. The country’s palm oil sector is pressing the government to reduce export taxes due to reciprocal tariffs imposed by the US, which are expected to lower farm-gate prices.
South Korea continued to experience foreign selling for a fourth week, with outflows totaling US$1 billion (RM4.38 billion). The government announced an US$8.6 billion (RM37.72 billion) supplementary budget to support sectors such as automobiles and semiconductors, which were hit by US tariffs.
Vietnam, which has faced eleven consecutive weeks of foreign selling, recorded outflows of US$185.8 million (RM815.17 million). The country’s cautious stance on aligning with China’s anti-US rhetoric, despite Xi Jinping’s visit to Hanoi and over 40 cooperation agreements, appeared to weigh on investor sentiment.
Thailand also experienced US$26.9 million (RM118.02 million) in net outflows, marking its eighth straight week of foreign selling. The Bank of Thailand warned that US tariffs could reduce GDP growth by up to one percentage point, with the full impact expected to be felt in the second half of the year.
On the domestic front, foreign net selling on Bursa Malaysia eased to RM330.5 million, significantly lower than the RM1.97 billion recorded the previous week. Foreign investors were net sellers every trading day except Friday, which saw a net inflow of RM39.9 million. The largest outflow occurred on Wednesday at RM153.6 million, while other days ranged between RM16.2 million and RM120.6 million. Friday’s inflow followed five consecutive days of outflows.
The sectors that saw net foreign inflows included telecommunications and media (RM119.5 million), consumer products and services (RM34.4 million), and property (RM2.45 million). The largest net foreign outflows were observed in financial services (RM96.6 million), technology (RM87 million), and construction (RM80.8 million).
Local institutions continued to support the market with net inflows of RM356.2 million, marking their 26th consecutive week of net buying. Meanwhile, local retail investors became net sellers with outflows of RM25.7 million, reversing a two-week buying trend. The average daily trading volume declined across the board, with foreign investors, local institutions, and local retailers registering decreases of 48.7%, 56.7%, and 47.2%, respectively. –BERNAMA
