Foreign ownership of Malaysian equities dropped to an all-time low of 20.2% of total market capitalisation as at end-July 2021 from 20.3% as at end-June 2021 as the country’s combined foreign portfolio outflow, which involves equities and bonds, tripled to about RM5 billion from around RM1.7 billion amid factors including Covid-19 uncertainties and US quantitative easing (QE) tapering anticipation, according to UOB Global Economics & Markets Research's note today.
KUALA LUMPUR: Malaysia recorded an increase in foreign portfolio outflows totalling RM5bil in July as foreign funds continued to reduce their stakes in local equities and debt securities due to local and external factors.
Friday, 30 Jul 2021 05:05 PM MYT
Meanwhile, the banking system liquidity position remained strong to support financial intermediation and a healthy liquidity coverage ratio (LCR) level.. Picture by Yusof Mat Isa
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 Net financing growth moderated to 4.3 per cent in June 2021 compared to 4.8 per cent in May, reflecting the decline in both outstanding loan growth of 3.4 per cent and outstanding corporate bond growth of 6.9 per cent last month, Bank Negara Malaysia (BNM) said.
The central bank said outstanding household loan growth moderated to 5.2 per cent last month as loan disbursements declined, mainly for the purchase of passenger cars, residential property and credit cards.
KUALA LUMPUR: Foreign investors turned net sellers of Malaysian bonds in June, resulting in a net foreign outflow of RM497.1mil.
This effectively ended a 13-month streak of net foreign inflows, with falling demand observed since May. Shorter-tenured Bank Negara securities and Malaysian Treasury Bills (MTB)/Malaysian Islamic Treasury Bills (MITB) accounted for the bulk of the June sell-off, totalling RM1.2bil.
The downtick was mitigated by a more subdued inflow of RM686.2mil into Malaysian Government Securities(MGS)/Government Investment Issues (GII), less than half of the RM1.7bil recorded in May.
The continued weak foreign appetite may be partly attributed to heightened risk aversion amid rising Covid-19 infections, the extension of full lockdowns, and uncertainties on the economic and political front.