Global investors turned net sellers in week before GE14

KUALA LUMPUR: In the penultimate week before the 14th General Election (GE14), the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) observed in the latest fund flow update that global investors turned net sellers for the first time in four weeks.

According to MIDF Research, based on preliminary data from Bursa Malaysia which excluded off market deals, the net amount withdrawn by foreign investors last week amounted to RM438.4 million net, the second highest weekly outflow so far this year.

As a result, the year-to-date inflow stood at RM3.02 billion net, making Malaysia the only market with inflows among the four Asean markets the research arm tracked so far in 2018.

“It seems that foreign investors are shifting to the sidelines earlier than expected before this year’s election,” MIDF Research KLCI will probably stage a relief rally on Thursday after GE13 reflected by an influx of foreign inflows, assuming the federal ruling incumbent retains its position.

“To note, foreign inflows mopped up RM1.43 billion worth of local equities during GE13.”

On foreign participation, MIDF Research noted that it remained solid as the average daily trade value (ADTV) reached RM1.29 billion, the highest in seven weeks.

“Local institutional funds took the opportunity, given the presence of foreign sellers to buy stocks which resulted in the second highest weekly net buying so far in 2018 of RM605.4 million net with the local institutional ADTV reaching RM2.32 billion,a fairly healthy level.”

Overall, Tenaga Nasional Bhd registered the highest net money inflow of RM35.7 million last week.