Foreign money flowed out for a second straight week, but the pace has slowed.
For the second consecutive week, foreign capital has continued its retreat from Bursa Malaysia, carrying the year-to-date outflow to RM20.27 billion — a figure that speaks to a prolonged reassessment of Malaysian equities by overseas investors. Yet within this withdrawal, a quieter story unfolds: the pace of selling has halved, domestic institutions and retail investors have stepped forward as buyers, and foreign money itself is not fleeing uniformly but rotating — exiting industrial and utility stocks while quietly accumulating financial and telecommunications shares. Markets, like tides, rarely move in one direction without some countercurrent, and Bursa's present moment is no exception.
- Foreign investors have now pulled RM20.27 billion from Malaysian equities this year, a sustained exodus that has cast a long shadow over Bursa Malaysia's outlook.
- Weekly outflows fell sharply by 53 percent to RM484.9 million, offering a tentative signal that the selling pressure may be losing some of its force.
- Local institutional investors absorbed much of the slack with RM267 million in net purchases, though their own buying appetite dropped nearly 70 percent from the prior week.
- Retail investors surged back with RM128.3 million in purchases — more than four times the previous week — extending their buying streak and injecting a note of domestic confidence.
- Foreign selling was concentrated in industrial products, utilities, and construction, while foreign buying quietly accumulated in financial services, telecoms, and plantations — a rotation, not a rout.
- The critical question now is whether the easing of weekly outflows marks a genuine turning point or merely a pause before foreign selling resumes its heavier rhythm.
Foreign investors have sustained their selling streak on Bursa Malaysia for a second straight week, pushing year-to-date outflows to RM20.27 billion according to CIMB Securities. The pace did ease considerably — weekly outflows fell 53 percent to RM484.9 million — but the cumulative weight of the exodus continues to define the market's mood.
The more revealing story lies in the divergence between foreign and domestic players. Local institutional investors remained net buyers, accumulating RM267 million last week despite a sharp pullback from the prior week's pace, while their year-to-date position holds at RM18.2 billion. Retail investors showed renewed conviction, quadrupling their purchases to RM128.3 million and extending a buying streak into a second week.
At the sector level, the divergence sharpens into something more deliberate. Foreign investors sold industrial products, utilities, and construction aggressively — offloading RM359 million, RM321 million, and RM66 million respectively, with Tenaga Nasional, Press Metal, and Sunway bearing the heaviest outflows. Yet in the same week, they were buyers of financial services, telecommunications, and plantations, accumulating RM258 million in financial stocks alone, with Maybank and Telekom Malaysia among the primary targets.
Local institutions moved in near-mirror opposition, buying heavily into the sectors foreigners were selling and retreating from those foreigners were buying. Retail investors, operating at smaller scale, concentrated in industrial products and utilities. The overall picture is one of tactical repositioning rather than wholesale retreat — though whether the moderation in weekly outflows signals a genuine shift in foreign sentiment, or simply a pause before the next wave, remains the question Bursa watchers will be watching closely in the weeks ahead.
The selling pressure from foreign investors on Malaysia's stock exchange shows no sign of abating. For the second week running, overseas money has flowed out of Bursa Malaysia, pushing the year-to-date exodus to RM20.27 billion, according to analysis from CIMB Securities. The pace has slowed, though—weekly outflows dropped to RM484.9 million, a 53 percent decline from the previous week—suggesting the hemorrhage may be stabilizing even as the cumulative damage mounts.
What's striking is the divergence in behavior between foreign and domestic players. While overseas investors retreat, local institutional money has stepped in as the primary buyer, though their appetite weakened last week. They accumulated RM267 million in net purchases, down nearly 70 percent from the prior week, yet their year-to-date position stands at RM18.2 billion. Retail investors, meanwhile, have found their footing. They extended a buying streak into a second week, with purchases jumping to RM128.3 million—more than four times the previous week's level—bringing their cumulative year-to-date position to RM568.5 million. Local nominee investors and proprietary traders also turned positive, though with smaller volumes.
The sector-by-sector picture reveals where the divergence is sharpest. Foreign investors dumped industrial products most aggressively, selling RM359 million net, followed by utilities at RM321 million and construction at RM66 million. Tenaga Nasional, Press Metal, and Sunway bore the brunt of this exodus. Yet in financial services, telecommunications, and plantations, foreign money actually bought. They accumulated RM258 million in financial stocks, RM151 million in telecom, and RM74 million in plantation shares, with Maybank, Telekom Malaysia, and SD Guthrie as the primary targets. This suggests a tactical rotation rather than a blanket retreat.
Local institutional investors marched in the opposite direction on several fronts. They were aggressive buyers of the very sectors foreigners were fleeing—industrial products, utilities, and construction—snapping up RM263 million, RM246 million, and RM86 million respectively. Tenaga Nasional, Press Metal, and Sunway again featured prominently. But they turned sellers in financial services, telecommunications, and plantations, the sectors where foreign money was buying. Retail investors, smaller in scale, concentrated their purchases in industrial products and utilities, with Chin Hin, Tenaga Nasional, and IOI Properties among their picks. Nominee investors favored technology and utilities, led by positions in Zetrix AI, Petronas Chemicals, and Capital A.
The pattern suggests a market in transition. Foreign investors, who have withdrawn more than RM20 billion this year, appear to be repositioning rather than simply fleeing. Local players, particularly institutions and retail traders, are filling some of the vacuum, though not at the same scale. Whether this represents confidence in Malaysian equities or merely a tactical pause in the foreign selling remains unclear. The next few weeks will show whether the moderation in weekly outflows signals a genuine reversal or simply a temporary catch of breath before the next wave of selling.
Citações Notáveis
Foreign investors sustained their net selling position for a second straight week, with year-to-date outflows rising to RM20.27 billion— CIMB Securities
A Conversa do Hearth Outra perspectiva sobre a história
Why would foreign investors keep selling if local money is stepping in to buy? Doesn't that suggest the market is finding its level?
It would, except the volumes don't match. Foreigners pulled out RM20 billion this year. Local institutions have only accumulated RM18 billion. There's a gap, and it's widening.
But you said the weekly selling eased by half. Isn't that a sign the pressure is lifting?
It could be. Or it could be exhaustion—they've already sold what they wanted to sell. The real question is whether they're done or just pausing.
The sector rotation is interesting. They're selling utilities and industrials but buying financials. What does that tell you?
It tells you they haven't lost faith in Malaysia entirely. They're not panicking. They're making choices about which parts of the market they want to own. That's more surgical than a blanket exit.
So local investors are buying what foreigners are selling. That's a bet against the foreigners' judgment.
Or a bet that foreigners are overreacting. Local institutions know this market better. They might see value where outsiders see risk.