International funds continue to sell for third week

KUALA LUMPUR: International funds continued to sell Malaysian equities for the third week running albeit at a slower pace, analysts observed in the latest fund flow report.

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) highlighted that based on preliminary data from Bursa Malaysia which excluded off market deals, foreign funds disposed RM128.7 million net of local equities last week.

“This was approximately one eighth smaller than the amount withdrawn in the preceding week,” it said.

According to MIDF Research, international investors were net sellers for four days.

“Offshore funds first sold RM77.9 million net on Monday, pulling the local bourse 0.12 per cent lower to end at 1,729 points.

“Risk-off tone was sparked by intensified US-Saudi tensions over the disappearance of Jamal Khashoggi, a Saudi columnist.”

The research arm noted that foreign net selling then shrank to just RM17.3 million on Tuesday before spiking up to RM31.8 million on Wednesday while the FBM KLCI advanced 0.22 per cent to 1,740 points, the highest closing during the week.

However, MIDF Research pointed out that Bursa’s nine-day foreign selling streak came to an end on Thursday as offshore funds acquired RM33.3 million net.

Amongst the four Asean markets the research arm tracked, Malaysia was the only country experiencing inflows that day as sentiment was hampered by the Fed’s hawkish stance highlighted in its latest minutes of meeting.

“However, foreign investors were back in selling mode on Friday, withdrawing RM35 million net after technology stocks slumped gain on Thursday in addition to several industrial companies reporting weak quarterly earnings.”

MIDF Research went on to note that Bursa has seen a net outflow of RM1.2 billion for the month of October, bringing the year to date outflow to RM9.8 billion.

Nevertheless, Malaysia still remained as the country with the second lowest outflow amongst the four Asean markets the research arm monitored.

Meanwhile, the research arm also noted that participation amongst foreign investors, local institutional funds and investors in the retail market took a slight breather last week as their weekly average daily traded value went lower by more than 10 per cent compared to the preceding week.

“Nonetheless, participation of each respective investor group remained at its healthy level.”

Overall, Public Bank Bhd registered the highest net money inflow of RM65.78 million last week, followed by Genting Plantation Bhd with the second highest net money inflow of RM18.92 million.

Petronas Dagangan Bhd saw the third highest net money inflow of RM5.71 million.

On outflows, Tenaga Nasional Bhd saw the largest net money outflow of RM19.22 million last week.

Fraser & Neave Holdings Bhd recorded the second largest net money outflow of RM11.25 million during the week under review while Malayan Banking Bhd registered the third largest net money outflow of RM9.38 million.