Weekly Fund Flow: Foreign Investors Cease Bank Selloffs, Crown Telekom Malaysia as Top Pick

Moomoo News MY joined discussion · Apr 21, 2025 01:29

Hey everyone! The world’s on edge as U.S. tariff threats rock markets, but here’s the twist: while Wall Street tanks, Asian indices are playing a risky game of limbo. Let’s dive into the chaos and see where the money’s really moving.

Market Pulse: Tariffs Spark Panic, Central Banks Scramble

The Trump administration’s 145% tariffs on Chinese imports (with tech goods temporarily spared but eyed for later) have sent shockwaves through supply chains. U.S. tourism nosedived 10% YoY in March, with Goldman Sachs warning of a $90B GDP hit.

Meanwhile, the ECB slashed rates to 2.25% for the seventh time in a year, as Germany’s economic sentiment collapsed to a 21-month low (-14 points). Markets are split: Singapore’s Straits Times surged 5.92%, but the Dow Jones plunged 2.66%. Talk about a rollercoaster!

Asia’s Money Moves: Three Weeks of Outflows, But India Bucks the Trend

Foreign investors pulled $3.84B from Asian equities for the third straight week. Taiwan (-$2.29B) and Indonesia (-$1.26B) bore the brunt, but India surprised with $990.4M inflows (thanks to 3.34% inflation, a 67-month low). The Philippines turned buyer with a tiny $65K inflow, while Vietnam’s 11-week outflow streak continues (-$185.8M).

Weekly Fund Flow: Foreign Investors Cease Bank Selloffs, Crown Telekom Malaysia as Top Pick

Malaysia Breakdown: Foreigners Flee, Locals Shore Up

Foreigners Hit the Panic Button: 26 straight weeks of net selling, with RM330.5M this week (down from RM1.97B prior). Only Friday saw a tiny RM39.9M reprieve.

Locals Step Up: Domestic institutions bought RM356.2M, offsetting foreign losses. Retailers? They turned sellers (-RM25.7M).

Sector Split: Telco & Media (+RM119.5M) and Consumer Products (+RM34.4M) rose, but Financial Services (-RM96.6M) and Tech (-RM87M) took hits.

Stock Spotlight: Who’s Buying What?

Foreign Moves:

$TM (4863.MY)$ (+RM106.1M) was a rare bright spot, but $PBBANK (1295.MY)$ (-RM72.7M) and $GAMUDA (5398.MY)$ (-RM55.3M) faced heavy selling.

Local Retail Net Buys:

$MAYBANK (1155.MY)$ (RM28.1M, Finance)

$NATGATE (0270.MY)$: In the previous week, Nationgate Holdings had started to show signs of attracting local interest due to its diverse business portfolio. Last week, with some positive announcements regarding its expansion plans in certain domestic sectors, local retail investors increased their buying.

$CIMB (1023.MY)$ (RM11.5M, Finance)

Local Retail Net Sells:

$TENAGA (5347.MY)$ (-RM26.3M, Utilities) ; $RHBBANK (1066.MY)$ (-RM24.6M, Finance) ; $PBBANK (1295.MY)$ (-RM15.6M, Finance)

Strategy Breakdown: Why the Diverging Moves?

Local Institutions: Loading up on defensive sectors (Utilities, Consumer) and betting on long-term ASEAN growth, especially post-Xi-Anwar MOUs in tech and green energy.

Local Retail: Chasing blue chips but dumping utilities amid tariff-driven inflation fears, and their buying of familiar blue chips was more concentrated on those with strong domestic consumption - driven business models.

Foreign Investors: In the week of April 11th, foreign investors had already been reducing their exposure to export-reliant sectors. Last week, with the potential implementation of more tariffs on tech products in the future, their selling in the tech sector reached new heights, while they continued to seek safety in sectors like Telcos.

Question: Can local buyers keep propping up the market if global tensions escalate?

Risks to Watch: Tariffs, Tech Turmoil, and a Waiting Game

U.S. tech tariffs could hit Malaysia’s semiconductor exports. Keep an eye on Brent crude (+7.31% to $67.96) and palm oil (-5.63% to RM3,975), as higher crude prices increase production costs for manufacturers, and lower palm oil prices affect the revenue of plantation companies.

China-Malaysia Partnership: A Bright Spot Amidst Turmoil

During Xi Jinping’s mid-April visit, Malaysia and China signed 31 MOUs covering digital economy, rail infrastructure, and AI, aiming for a "Golden 50 Years" of collaboration. Key winners? $TM (4863.MY)$ (foreign net buy: RM106.1M) and $GAMUDA (5398.MY)$ (local institutions: RM39.7M), linked to infrastructure and tech deals.

Meanwhile, ASEAN’s collective pushback against U.S. tariffs gained steam, with Thailand eyeing investments in Malaysia’s EV sector to mitigate risks. For investors, this partnership offers rare upside in tech and green sectors—but watch for geopolitical volatility.

Stay nimble, the tariff row has subsided somewhat in the short term, but this is not the final outcome. What is your take on the impact on Malaysia?

Foreign capital outflow slows down, market conditions pick up?

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