Whats up with all the foreign funds? For the 18th week straight, there has been a net outflow of foreign funds from KLCI.
This week alone foreign investors have sold off RM 600 mil.
To put things in prospective, in the pass 6 months in 2020, the net outflow has been RM 15.7 bil.
However there is some good news. We are currently the 4th smallest foreign net outflow market in SEA.
Not saying that is good but hey better than being the highest😜
Based on MIDF, this could be due to the risk of political instability with a likelihood of a snap election. Even though the virus has been contained in Malaysia, in the outside world its a different story. Fresh outbreak in Beijing followed by the record high infection cases in US, South Africa, Brazil and India. A second wave or the risk of a failed containment plan in many countries are a real possibility now.
US weekly jobless claims data showed an increase of 1.5 million Americans filing for unemployment benefits. The expected V shape recovery might just be a fading dream.
Investors could be rushing to safe heavens before another correction occurs. Look at gold🥇, its at the highest it has been for the past 6 years.