KUALA LUMPUR: Foreign investors extended a five-week streak of net selling across eight Asian markets, with outflows totalling US$12.13 billion (RM48 billion), according to MBSB Investment Bank Bhd.
Indonesia was the only country to receive net foreign inflows, with Taiwan leading the net selling, MBSB said in its Fund Flow Report for the week ended March 20.
Indonesia was the only market enjoying a net buying position, recording US$20.3 million in net foreign inflows, as its central bank maintained the benchmark seven-day reverse repo rate at 4.75%, alongside the deposit facility at 3.75% and lending facility at 5.50%.
“The decision was aimed at stabilising the Indonesian rupiah, which had depreciated to around 16,985 against the US dollar amid ongoing capital outflows.
“At the same time, Bank Indonesia reiterated its commitment to keeping inflation within the 2.5%, approximately 1% target range, despite inflation rising to 4.76% year-on-year in February 2026,” the bank said.
It said Taiwan extended its three-week net foreign selling streak, recording US$5.64 billion in outflows, the largest in the region, due to the escalating West Asia conflict, which raised concerns over potential supply chain disruptions and a renewed surge in global energy prices.
“While Taiwan’s direct exposure to the Strait of Hormuz remains limited (less than 20%), its high energy import dependency of 97-98%t leaves the economy sensitive to oil price volatility and imported inflation pressures,” it said.
On Bursa Malaysia, foreign investors net sold for the second week in a row, recording RM168.3 million in net foreign outflows.
“Foreign investors were net sellers on two out of four trading days during the week, with the largest outflow recorded on Thursday (-RM244.3 million), followed by Monday (-RM175.5 million), while the largest inflows were recorded on Tuesday (RM159.7 million), and Wednesday (RM91.8 million),” the report said.
The top three sectors that recorded net foreign inflows were plantation (RM156.8 million), industrial products and services (RM90.7 million), and healthcare (RM61 million).
Outflows were concentrated in financial services (-RM399.3 million), consumer products and services (-RM56.3 million), and construction (-RM46 million).
Local institutions recorded a net inflow of RM332.8 million, marking a consecutive second week of net buying activities. Local retailers recorded net outflows of -RM164.6 million, reverting to net selling after the previous week of inflows.
Average daily trading volume saw a broad-based decline: local retailers by -12.7%, local institutions -14.6%, while foreign investors saw an increase of 7%.
