Qualampur: Foreign investors returned to pure vendors in eight Asian markets last week, reversing their single-week purchases, recording a huge net outflow of US $ 7.12 billion (RM31.68 billion) with South Korea and India, which was the highest sales pressure.
According to the Fund Flow Report of the Midf Amana Investment Bank BHD for the weekend ended on April 4, South Korea saw a net outflow of $ 4.44 billion, about 20 times more than the previous week’s outflow and extended its line of foreign withdrawal to two weeks.
The investment bank said it was due to political upheaval in South Korea, which started with the new American tariff from the impeachment of President Yun Suk Yeol’s Constitutional Court, which led to uncertainty and foreign investor withdrawal.
It said that South Korea faced tariffs up to 26%, which is increasing the possibility of a global trade war and negatively affects investor spirit towards South Korean markets.
“India recorded the second largest pure foreign outflow in the region, with an amount of US $ 1.21 billion with withdrawals, marking another turnaround after a week’s streak of a week.
“On April 2, 2025, US President Donald Trump announced 10% baseline tariff on all imports, with high mutual tariffs for specific countries, 27% tariff on Indian goods, effective from April 9, 2025,”.
Midaf Amana stated that Taiwan experienced a significant outflow for the sixth straight week run by 32% mutual tariffs on Taiwan’s imports, which raises concerns about their export competition among investors, especially in heavy areas on the US market.
It said that Vietnam and Thailand were slapped with mutual tariffs of 46% and 36%, effective from April 9, 2025 respectively, respectively.
“Meanwhile, Vietnam has consistently recorded its ninth week outflow, which is more than US $ 345 million compared to the previous week, and Thailand also extended its foreign withdrawal streak to the sixth week, with the US $ 202.4 million, with the outfits with $ 202.4 million,” said this.
However, the Philippines recorded the lowest outflow of the markets that we monitor, which extended a two -week -long ride with a minor foreign outflow of US $ 14.9 million, while the Indonesian markets did not record any fund flow last week as Hari Raya was closed due to adilificry ceremonies, which were closed throughout the week.
Foreign investors enhanced the line of sales on Barsa Malaysia for the 24th consecutive week, recorded a net outflow of RM426.6 million lower than the net outflow of RM1.15 billion recorded in the previous week, which was aided by the markets due to the closure for two days due to the Harley Raya festival.
MIDF Amanah said that local institutions continued to provide a buffer against foreign sales, with a quantity of RM369.1 million with a net purchase of its 24th straight week.
“Meanwhile, local retail investors returned to pure buyers, which abolished the line of sales of their single-week with RM57.5 million.
“The average daily trading volume saw a widespread-based decrease. The participation of the foreign investor and the local institute declined by 11.7%and 28.8%respectively, while the local retail saw an increase of 2.2%,” said this. – Bernma
