Foreign Investors Pull RM31.68 Bln From Asian Markets, South Korea Sees Heaviest Selling

KUALA LUMPUR, April 7 (Bernama) -- Foreign investors returned to net sellers last week across eight Asian markets, reversing their single-week buying streak, recording a heavy net outflow of US$7.12 billion (RM31.68 billion, US$1 = RM4.45), with South Korea and India experiencing the heaviest selling pressure.

According to MIDF Amanah Investment Bank Bhd’s (MIDF Amanah) Fund Flow Report for the weekend ended April 4, 2025, South Korea saw a US$4.44 billion net outflow, nearly 20 times higher than the previous week’s outflow and extending its streak of foreign withdrawals to two weeks.

The investment bank said this was due to the political upheaval in South Korea, triggered by the Constitutional Court’s impeachment of President Yoon Suk Yeol, coupled with new US tariffs, which led to heightened uncertainty and foreign investor withdrawals.

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It said South Korea faced tariffs as high as 26 per cent, exacerbating fears of a global trade war and negatively impacting investor sentiment towards South Korean markets.

“India recorded the second highest net foreign outflows in the region with withdrawals amounting to US$1.21 billion, marking yet another turnaround after a single-week streak of inflows.

“On April 2, 2025, US President Donald Trump announced a 10 per cent baseline tariff on all imports, with higher reciprocal tariffs for specific countries, including a 27 per cent tariff on Indian goods, effective April 9, 2025,” it added.

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MIDF Amanah said Taiwan also experienced a significant outflow for the sixth straight week at US$814.6 million, driven by a 32 per cent reciprocal tariff on Taiwanese imports, which raised concerns among investors about its export competitiveness, particularly in sectors heavily reliant on the US market.

It said Vietnam and Thailand were slapped with reciprocal tariffs of 46 per cent and 36 per cent, respectively, effective April 9, 2025.

“Meanwhile, Vietnam recorded its ninth consecutive week of outflows, totaling US$345.0 million, more than four times higher than the previous week, and Thailand also extended its foreign withdrawal streak to a sixth week, with US$202.4 million in outflows,” it added.

However, the Philippines recorded the lowest outflow out of the markets we monitor, extending to a two-week selling streak with a modest net foreign outflow of US$14.9 million, while Indonesian markets did not record any fund flows last week as markets were shut due to the Hari Raya Aidilfitri celebrations, which extended throughout the week, it said.

Foreign investors extended their selling streak on Bursa Malaysia for the 24th consecutive week, registering a net outflow of RM426.6 million, lower than the net outflow of M1.15 billion recorded in the previous week, aided by markets being closed for two days due to the Hari Raya festivities.

MIDF Amanah said local institutions continued to provide a buffer against foreign selling, posting their 24th straight week of net buying with inflows amounting to RM369.1 million.

“Meanwhile, local retail investors returned to net buyers, ending their single-week selling streak with an inflow of RM57.5 million.

“The average daily trading volume saw a broad-based decrease. Foreign investor and local institution participation plunged by 11.7 per cent and 28.8 per cent, respectively, while local retail saw an increase of 2.2 per cent,” it said.

-- BERNAMA