More stocks sold ahead of Aidilfitri break

KOTA KINABALU: Foreign investors sold stocks listed on Bursa Malaysia Bhd (Bursa Malaysia) at a stronger pace ahead of the Aidilfitri break.

According to analysts with the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), this marked the seventh week of foreign attrition, matching the longest uninterrupted period of selling seen in 2017 from the week ended September 22 to November 3, 2017.

“Based on preliminary data from Bursa which excluded off market deals, the net amount disposed by foreign investors last week breached above the RM1 billion level at RM1.21 billion net,” MIDF Research said in its funds flow report yesterday.

As of last Friday, the selling streak has been extended to 28 days – just one day shy of the 29day selling spree in early January to mid-February 2014.

MIDF Research saw that Monday’s attrition hovered above the RM200 million level at RM216.5 million before rising to RM359 million net on Tuesday.

“Investors were nervous on Tuesday amid the historic summit between the US and North Korea which also dragged the FBM KLCI down by 0.66 per cent to 1,764 points.

“Selling activity on Wednesday returned to Monday’s level

Based on preliminary data from Bursa which excluded off market deals, the net amount disposed by foreign investors last week breached above the RM1 billion level at RM1.21 billion net.

as global investors only sold RM230.4 million net amid dampened risk-on mood as investors awaited the Fed’s decision on interest rates.”

MIDF Research noted that foreign selling peaked during the week on Thursday at RM402.2 million net before the local bourse was closed for the Aidilfitri break on Friday.

“It is noteworthy that other Asian counterparts such as Korea, Taiwan, the Philippines and Thailand also experienced huge outflows that day spurred by the Fed’s rate hike.”

The research arm also noted that Malaysia had the second largest weekly outflow among the four Asean markets we monitor, after Thailand.

“Nonetheless, the year-to-date outflow from Malaysia of RM4.23 billion net or US$1.06 billion net is still the lowest among its Asean peers namely Thailand, the Philippines and Indonesia.”

On foreign participation, MIDF Research said that it was strong as the foreign average daily trade value increased by 24 per cent to RM2.03 billion, logging its 11th straight week above the RM1 billion mark.

The research arm added that the retail market and local funds meanwhile saw buying activity for its fifth and seventh straight week, respectively.

Kuala Lumpur Kepong Bhd registered the highest net money inflow of RM16.16 million last week while Bursa Malaysia recorded the second highest net money inflow of RM7.91 million.

British American Tobacco Malaysia Bhd saw the third highest net money inflow of RM5.69 million.

As for outflows, Public Bank Bhd saw the largest net money outflow of RM13.62 million last week.

Tenaga Nasional Bhd recorded the second largest net money outflow RM12.66 million during the week under review while Petronas Chemicals Bhd registered the third largest net money outflow of RM8.98 million.

MIDF Research