MALAYSIA: FOREIGN PORTFOLIO OUTFLOWS SURPRISED TO THE UPSIDE IN OCTOBER – UOB
Senior Economist at UOB Group Julia Goh and Economist Loke Siew Ting assess the recently published Foreign Portfolio readings in Malaysia.
Key Takeaways
Malaysia recorded a third straight month of foreign portfolio outflows worth MYR4.9bn in Oct (Sep: -MYR3.8bn, Aug: -MYR4.9bn). The outflows came through net foreign selling of Malaysian debt securities (Oct: -2.6bn) and equities (MYR2.3bn). Cumulative flows was still a net inflow of MYR16.1bn in Jan-Oct (vs. –MYR1.9bn in Jan-Oct 2022) despite sharp selloffs of MYR13.5bn in Aug-Oct which more than offset the MYR12.7bn of inflows in Jul.
Larger foreign portfolio outflows in Oct exacerbated the MYR weakness, which fell 1.6% against the USD to USDMYR4.766 at end-Oct. Bank Negara Malaysia’s foreign reserves fell USD1.7bn m/m to USD108.5bn, bringing year-to-date decline to USD6.1bn. The latest reserves position is sufficient to finance 5.1 months of imports of goods & services and is 1.0 times the total short-term external debt. BNM’s net short position in FX swaps widened by USD1.2bn to USD24.1bn as at end-Sep
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.