LAST_UPDATESun, 24 Jun 2018 9pm

"Since GE14, Foreigners Have Been Pulling Money Out Of Our Stock Market Every Single Day"

Filepic: NSTFilepic: NST

In fact, it has become something of a record, now reaching two weeks and counting of foreign investors selling their stake in Malaysia.

"Since GE14, foreigners have been pulling money out of our stock market every single day. it is now and unprecedented 24 days straight of foreign net selling that has seen RM7 billion leave our stock market and withdrawn from Malaysia.

"Other than the stock market, our bond markets suffered the same fate as a net RM12.9 billion has been pulled out by foreigners in the month of May alone. The same trend has continued in June so far," a Facebook posting on Phantom of the Pakatan Opera notes.

"This means more than RM20 billion of investments have been pulled out by foreigners since GE14," the comment reiterates the sentiments of local investors over non-stop bleeding from our local financial markets.

A Bloomberg report today also highlighted the same sentiment, pointing out that the worrying momentum of the foreign outflow of funds which shows no sign of slowing down.

"Foreign selling of Malaysia's stocks accelerated in the past week as the nation's benchmark equity index fell and the Malaysian ringgit weakened.

"The 5-day moving average of net foreign outflows accelerated to $69.3 million (RM276.2 million), compared with the 20-day average outflows of $60.6 million (RM241.5 million), according to data from the Bursa Malaysia Bhd compiled by Bloomberg," The Edge Markets reports.

A Kenanga Investment Bank Bhd statement reported by NST earlier this week underlines the same trend.

“Investor sentiments were rattled by the unprecedented outcome of the 14th General Election and by the subsequent news flow on the Pakatan Harapan government’s policy decisions.

"We expect continued selling pressure in the coming months following risig concerns that credit rating agencies would put Malaysia on ratings watch due to the new government’s decision to cancel large scale infrastructure projects.

“The implementation of fuel subsidies and the removal of the Goods and Services Tax which could weigh on the government’s ability to meet its fiscal target is adding pressure to sentiment," the Kenanga statement added.

- mD