Overseas investors consolidated their positions ahead of National Day

KUALA LUMPUR: Overseas investors solidified their stance on Bursa Malaysia last week ahead of the National Day holiday.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on preliminary data from Bursa which excluded off market deals, international funds withdrew RM15.3 million net of local equities, last week.

“This is the lowest weekly foreign net outflow recorded so far in 2018,” MIDF Research said.

MIDF Research noted that offshore investors accumulated a decent amount of local equities to a tune of RM23.2 million net and RM34.8 million net on Monday and Tuesday respectively.

The research arm further noted that the mood on Monday was upheld by comments from the Federal Reserve citing the ongoing plans to increase interest rates.

“Risk-on appetite was further bolstered the next day following the preliminary agreement reached between the US and Mexico on replacing the North American Free Trade Agreement (NAFTA).

“The local bourse tracked the gains on Wall Street to jump 0.84 per cent to 1,826.9 points on Tuesday, a level not seen since late May this year,” it said.

On Wednesday, things took a turn when investors fled Bursa on a large scale of RM121.6 million net, which MIDF Research highlighted was the highest daily outflow in six trading days as investors booked in profits and took cue from muted trading overnight on Wall Street.

“Foreign funds nevertheless snapped up RM48.3 million net in conformity with Asian peers namely South Korea, Taiwan and Indonesia, tracking the rally in technology shares in US markets.”

On the total foreign net outf low in August 2018, MIDF Research said that it shrank to just RM97.4 million, compared to RM1.6 billion in July 2018.