Foreign Investors Return To Asian Markets With US$93.8 Mln Net Inflow - MIDF

KUALA LUMPUR, April 2 (Bernama) -- Foreign investors returned to the Asian market with a modest net inflow of US$93.8 million last week, after a four-week selling streak with only India and Indonesia registering net foreign inflows.

According to MIDF Amanah Investment Bank Bhd's Fund Flow Report, titled “Global Markets Brace for Trump’s Liberation Day” for the week ended March 28, India led the region with a net inflow of US$3.23 billion, marking a sharp turnaround after fifteen straight weeks of outflows.

“Despite a slight dip in March's composite PMI to 58.6, investor sentiment remained strong, buoyed by India’s openness to slash tariffs on over half of US imports worth US$23 billion to avoid reciprocal duties.

“The recent US$400 million syndicated loan by Bank of India, its first US dollar loan in over a decade also drew robust participation, reflecting renewed foreign interest in Indian assets,” it said.

Indonesia also reversed a nine-week selling streak with a net inflow of US$195.9 million as authorities moved swiftly to restore investor confidence following last week’s stock and currency slide.

Meanwhile, MIDF Amanah said other regional markets continued to experience outflows. Taiwan recorded the region’s highest net outflow for the fifth straight week at US$2.61 billion, driven by fears of impending US tariffs and mounting geopolitical risks.

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It said South Korea also saw a net outflow of US$228.4 million, reversing last week's brief inflow as US President Donald Trump’s auto tariffs reignited trade fears; Thailand extended its foreign withdrawal streak to a fifth week, recording US$121.26 million in outflows.

Vietnam posted its eighth consecutive week of outflows totalling US$82.15 million as it moved to defuse potential US tariff threats by slashing import duties on LNG, cars, and various agricultural goods, while the Philippines ended its three-week buying streak with a net outflow of US$34.09m, amid mixed economic signals.

Back home, the local bourse also saw foreign investors’ outflow of RM1.15 billion. Local institutions continued their 23rd straight week of net buying to buffer against foreign selling, with inflows amounting to RM1.24 billion.

Construction and plantation sectors recorded net foreign inflows of RM7.1 million and RM3.9 million, respectively.

Financial services, consumer products and services, and healthcare recorded the highest net foreign outflows at RM564.4 million, RM142.3 million and RM118.1 million, respectively, it said.

The report said local retail investors turned net sellers, reversing a six-week buying streak with an outflow of RM87.9 million.

“The average daily trading volume saw a broad-based decrease.

“Foreign investor participation plunged by 34.7 per cent while local institutions and local retail saw declines of 12.7 per cent and 13.8 per cent, respectively,” it added.

-- BERNAMA