KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Regional Flows: Broad Inflows, Except India and Thailand
Foreign investors net bought US$389.4 million (RM1.65 billion) worth of Asian equities in the week ended Aug 15, 2025, marking a second straight week of inflows, according to MBSB Investment Bank.
South Korea led the region with US$587.5 million inflows, boosted by optimism over the upcoming Lee–Trump summit (Aug 25, Washington) to strengthen alliances in semiconductors, batteries, shipbuilding, and critical minerals.
Indonesia attracted US$412.3 million after signing a free trade agreement with Peru.
Taiwan posted US$90.4 million, extending its foreign buying streak to eight consecutive weeks, the longest since 2021.
India, however, saw US$347.8 million in outflows, its fifth straight week of foreign selling — the longest since March 2025.
Thailand also recorded net outflows.
Despite the withdrawals, S&P Global Ratings upgraded India’s long-term sovereign rating to “BBB” from “BBB-”, its first upgrade in 18 years, citing robust growth, fiscal consolidation, and monetary policy credibility.
Malaysia: Sixth Week of Outflows
In contrast, Malaysia continued to face foreign selling:
Net outflow: RM566.1 million, the sixth consecutive week of selling.
This was, however, a 50% improvement from the prior week’s RM1.14 billion outflow.
Daily trend: Foreign investors were net sellers every day, with outflows ranging from RM94m to RM167.4m. The biggest sell-off was Friday (Aug 15).
Sector Breakdown in Malaysia
Top inflows:
Plantation: RM77.7m
Property: RM52.7m
Financial Services: RM42.2m
Top outflows:
Utilities: RM209.5m
Telecommunications & Media: RM185.5m
Healthcare: RM152.7m
Investor Takeaway
Positive momentum is visible across Asia, especially in South Korea, Indonesia, and Taiwan, thanks to trade deals and geopolitical cooperation.
India’s outflows highlight near-term caution, but its credit rating upgrade may improve long-term investor confidence.
Malaysia remains under pressure, with continued foreign exits, though the pace of selling has slowed. Sector rotation shows interest in plantation, property, and financials, while defensives like utilities and healthcare faced selling pressure.
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