Why did foreign investors net sell RM168.5 million last week?

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Foreign Investors Net Sold RM168.5 Million in Malaysian Equities Last Week

Foreign investors continued their net selling trend in Malaysian equities, offloading RM168.5 million worth of shares in the week ending January 20. This outflow represents a significant increase compared to the RM45.3 million net sold in the week prior, which concluded on January 13. Year-to-date, foreign net sales have reached RM142.9 million, indicating a sustained pattern of divestment in the domestic stock market.
Outflows Dominated Trading Days

The net selling activity by foreign investors was prevalent throughout the trading week. Only on Tuesday, January 17, did foreign investors exhibit net inflows, amounting to RM85.4 million. However, the remaining four trading days saw net selling, with Wednesday, January 18, recording the heaviest outflow at RM114.6 million. This substantial selling occurred on the day preceding Bank Negara Malaysia's Monetary Policy Committee (MPC) meeting.
Key Sectors Experienced Outflows

Several sectors witnessed net foreign outflows during the week. The financial services sector was the most significantly impacted, with a net outflow of RM272.4 million. Other sectors that experienced foreign divestment included industrial products and services, which saw RM9.9 million in net outflows, and transportation and logistics, with RM2.4 million in net outflows. Conversely, sectors like energy, healthcare, and technology experienced net foreign inflows.
Local Institutions Remained Net Buyers

In contrast to foreign investor activity, local institutions continued their trend of net buying for the second consecutive week. They recorded net inflows totalling RM391.6 million in the week ending January 20. This sustained buying interest from local institutions has contributed to a year-to-date net inflow of RM606.5 million, signalling a different investment sentiment among domestic institutional players.

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Why did foreign investors net sell RM168.5 million last week?

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