RM275.7m net sale by foreign funds last week

Foreign investors sold about RM1.49 billion in equities last month, marking the third consecutive month of foreign net selling.

MIDF Amanah Investment Bank Bhd Research said the foreign outflow for the first four months stood at RM2.76 billion.

In its weekly fund flow report, MIDF research analyst Adam M. Rahim noted that foreign selling picked up pace last week, extending the streak to the sixth week.

Based on data from Bursa Malaysia, he said foreign funds sold a net sum of RM275.7 million in equities last week, almost four times more than the week before.

He said Monday saw a foreign net outflow of RM96.3 million as investors waited for data from the United States, Europe and China that might shed some light on the prospects of global growth.

“Foreign net selling peaked on Tuesday at RM102.9 million as Malaysia and other regional markets were closed on Wednesday. Sentiment was also partially affected by the lower-than-expected Purchasing Managers Index in China.”

After markets reopened on Thursday, Adam said foreign investors continued to sell equities, with the new figure amounting to RM88.8 million net.

He said the trend was in line with regional peers Thailand and Indonesia. International funds made their way back last Friday as they snapped up a net total of RM12.2 million in local equities.

“The performance of the local bourse on that day was partly influenced by Malaysia’s April trade surplus of RM14.4 billion, the largest gain since October last year,” he added.