Foreign Investors Pull US$5.87 Bln From Asian Markets

KUALA LUMPUR, April 14 (Bernama) -- Foreign investors continued their net selling in Asian markets for the second consecutive week, with total outflows amounting to US$5.87 billion (US$1 = RM4.41), led by heavy sell-offs in South Korea and India.

According to MIDF Amanah Investment Bank Bhd’s Fund Flow Report for the week ended April 11, 2025, South Korea registered the highest net foreign outflow in the region at US$2.95 billion, marking its third straight week of withdrawals.

In response, South Korea announced emergency support measures, including tax cuts and subsidies, to help its auto sector weather a new 25 per cent US tariff on vehicle imports.

bootstrap slideshow

With nearly half its auto exports going to the US, the government warned of a major impact and pledged to negotiate with Washington while exploring new markets, the bank said.

MIDF Amanah noted that India also experienced a significant outflow for the second week in a row, with net foreign selling totalling US$2.47 billion

This was attributed to the announcement of a trade deal with the US amid shifting tariff policies, with Foreign Minister Jaishankar noting that negotiations were now being conducted with “a high degree of urgency”.

bootstrap slideshow

Meanwhile, Indonesia recorded a net foreign outflow of US$350.1 million following the reopening of its market after the Hari Raya Aidilfitri celebrations.

The country's palm oil sector is urging the government to reduce export taxes and levies in response to the 32 per cent reciprocal tariffs imposed by the US, which are expected to reduce farmers' prices by up to 3.0 per cent, it shared.

Among regional markets, the bank noted only Taiwan recorded a net foreign inflow, amounting to US$519.0 million.

“Taiwan extended short-selling curbs for another week to stabilise markets after US tariff-related volatility. Despite signs of improving investor confidence, global uncertainties persist. Authorities noted the measures helped curb speculation, and a US$15.0 billion stabilisation fund was activated, with the market still down 15 per cent this year,” it said.

On the domestic front, the bank said foreign investors extended their selling streak on Bursa Malaysia for the 25th consecutive week, registering a net outflow of RM1.97 billion.

The only two sectors that saw net foreign inflows were consumer products and services (RM5.3 million) and telecommunication and media (RM4.4 million). The sectors with the highest net foreign outflows were financial services (RM1.36 billion), utilities (RM136.5 million) and construction (RM107.9 million).

“Local institutions continued to cushion foreign selling, posting their 25th straight week of net buying, with inflows amounting to RM1.93 billion. Local retail investors also recorded a second straight week of net buying with an inflow of RM43.7 million," it said.

MIDF Amanah added that the average daily trading volume (ADTV) saw a broad-based increase with foreign investors, local institutions, and local retailers seeing increases of 54.7 per cent, 120.9 per cent and 87.5 per cent, respectively.

-- BERNAMA