Foreign selling returns to Bursa at intensified levels

KUALALUMPUR: Foreign selling returned to Bursa Malaysia at a rather intensified level, there search arm of MIDF Amanah Investment Bank Bhd (MIDF Research) observed, compared to the amount disposed in the past six weeks that did not exceed RM100 million net.

According to MIDF Research, international investors dumped RM297.1 million net of Malaysian equities last week, the highest weekly attrition recorded in seven weeks.

It noted that the estimates made were based on transactions in the open market which excluded off market deals.

“Foreign buyers exactly matched foreign sellers on Monday,” MIDF Research said.

“A bout of acquisition then took place on Tuesday where foreign investors bought RM181.3 million net, the highest net inflow in a day in almost five months despite the weak China industrial output data that coincided with the 0.22 per cent dip in the FBM KLCI.”

“However, foreign investors were back in selling mode thereafter until the week ended with Thursday recording the highest amount sold at US$282.1 million net.

“The heavy foreign buying on Thursday saw the FBM KLCI close at a neight-month low of 1,718points ahead of the House of Representatives’ vote for a tax cut bill.”

MIDF Research highlighted that market sentiment improved later on Friday following the strong third quarter of 2017 (3Q17) gross domestic product (GDP) which climbed 6.2 per cent that saw a 0.21 per cent rebound in the FBM KLCI.

The research arm further noted that foreign selling still occurred on the same day but on a reduced level below RM100 million net.

“By virtue of the intense foreign selling last week, the cumulative year-to-date in flow has substantially decreased to RM 9 billion from RM9.31 billion in the week before.

“Nonetheless, the year-to-date inflow still offsets approximately 31 per cent of the total net outflow from 2014 to 2016,” the research arm said.

“Foreign participation was back on its feet as the foreign average daily trade value( AD TV) surged by 27 per cent to RM1.13 billion after three weeks of staying below the RM1 billion mark.

“In contrast, the retail ADTV decreased by eight per cent to settle below the RM 1 billion level at RM 957 million.”

CIMB Group Holdings Bhd registered the highest net money inflow of RM12.11 million last week, followed by Genting Plantations Bhd which recorded the second highest net money in flow of RM5. 91 million and Heineken Ma lays iaBhd in third at RM4.07 million.

Meanwhile, Public B an kBhd saw the largest net money outflow of RM25.62 million last week.

Petronas Chemicals Group Bhd recorded the second largest net money outflow at RM24.16 million and Tenaga Nasional Bhd came third with aRM 16.89 million out flow during the week under review.