BERNAMA – Foreign investors returned to the Asian market with a modest net inflow of USD93.8 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 USD3.23 billion, marking a sharp turnaround after 15 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 United States (US) imports worth USD23 billion to avoid reciprocal duties.
“The recent USD400 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 USD195.9 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.
It said South Korea also saw a net outflow of USD228.4 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 USD121.26 million in outflows.
Vietnam posted its eighth consecutive week of outflows totalling USD82.15 million as it moved to defuse potential US tariff threats by slashing import duties on liquefied natural gas, cars, and various agricultural goods, while the Philippines ended its three-week buying streak with a net outflow of USD34.09m, amid mixed economic signals.
The Malaysian bourse also saw foreign investors’ outflow of MYR1.15 billion. Malaysian institutions continued their 23rd straight week of net buying to buffer against foreign selling, with inflows amounting to MYR1.24 billion.
Construction and plantation sectors recorded net foreign inflows of MYR7.1 million and MYR3.9 million.
Financial services, consumer products and services, and healthcare recorded the highest net foreign outflows at MYR564.4 million, MYR142.3 million and MYR118.1 million, it said.
The report said Malaysian retail investors turned net sellers, reversing a six-week buying streak with an outflow of MYR87.9 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,” it added.
