KUALA LUMPUR, Sept 8, 2025 — Bursa Malaysia endured another challenging week as foreign investors extended their net selling streak, underscoring persistent caution in regional equity markets. According to the latest data from MBSB Research, overseas funds withdrew RM1.14 billion from the local bourse in the week ended September 5, marking the fifth consecutive week of foreign outflows. The figure represented a significant escalation compared with the RM378.1 million outflow recorded the week before, highlighting renewed volatility in capital flows.
Foreign investors remained consistent net sellers throughout the week, with daily withdrawals ranging from RM145 million to over RM318 million. Analysts noted that the heaviest selling was concentrated in the financial services, healthcare, and utilities sectors, reflecting broader risk aversion towards interest-rate sensitive and defensive counters. By contrast, selective interest was seen in areas such as industrial products and services as well as transportation and logistics, which attracted modest foreign inflows, suggesting that some investors continue to position in sectors tied to long-term growth and infrastructure momentum.
Despite the steady exodus of foreign funds, the domestic investor base once again played a crucial role in stabilising market sentiment. Local institutions continued to absorb selling pressure, chalking up RM1.14 billion in net buying, their fifth straight week of accumulation. Retail investors also showed resilience, reversing earlier selling patterns to register net inflows of nearly RM250 million. Market strategists said this persistent domestic support was vital in cushioning Bursa Malaysia from deeper losses, with local buyers effectively counterbalancing offshore liquidations.
Trading activity was also livelier across the board, with foreign participation rising sharply, while both institutional and retail volumes expanded. The increase in turnover was seen as a sign of renewed rotation, though investors remain wary of external uncertainties. Global macroeconomic conditions, particularly signals from the United States Federal Reserve and continuing geopolitical tensions, continue to weigh heavily on fund flows into emerging markets like Malaysia.
Looking ahead, sentiment is expected to remain cautious in the near term, with attention focused on whether foreign outflows can ease further in the coming weeks. Analysts believe domestic investors will remain key stabilisers, but note that sustainable recovery in foreign participation will likely depend on clearer global monetary signals and regional growth prospects. For now, sectors that continue to attract selective inflows, such as logistics, construction, and industrial products, may emerge as pockets of resilience, even as broader market flows remain under pressure.
