Bursa records slower momentum of foreign net selling last week
KUALA LUMPUR: Bursa Malaysia saw a slower momentum of foreign net selling last week.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), international investors sold RM631.9 million net of local equities last week.
This is the first time in five weeks that international funds disposed local equities below the RM1 billion mark.
“In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third least foreign net outflow on a yearto-date basis,” MIDF Research said.
It noted that the year-to-date foreign outflow from Malaysia came to RM7.63 billion.
“Monday recorded a foreign net outflow of RM244.2 million, dragging the local bourse 3.3 per cent lower to 1,259.9 points. Sentiment was dampened as the discussions of a US stimulus package faced hurdles from the US Senate Democrats.”
MIDF Research highlighted that foreign net selling activity was lower by half at RM116.5 million net on Tuesday.
“Risk appetite returned to Asia following the Federal Reserve’s plan to buy unlimited amounts of Treasury bonds to keep borrowing costs low.”
In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third least foreign net outflow on a year-to-date basis.
MIDF Research
The research arm further highlighted that the level of foreign net selling fell for the third consecutive day on Wednesday a er off shore investors only sold RM81.6 million net.
It pointed out that US President Donald Trump’s deal with the Senate Democrats and Republics on a historic rescue package outweighed the extension of the movement control order by the Malaysian government.
“The momentum of foreign net selling inched higher to RM91.3 million net on Thursday as Malaysian’s number of Covid-19 infections reached 2,031 cases.
“Friday then saw a foreign net outflow of RM98.35 million as US unemployment surged to a record 3.3 million, amplifying economic concerns from the Covid-19 pandemic.”
That said, MIDF Research noted that the local bourse was up by 1.1 per cent to close at a two-week high of 1,343.1 points, as investors digested the latest RM250 billion stimulus package announced by the Malaysian Government.
“In terms of participation, the average daily traded value (ADTV) of foreign investors dropped the most by 41.9 per cent to RM1.2 billion, which is still at a healthy level.”
Overall, Axiata Group Bhd registered the highest net money inflow of RM6.85 milliion last week, followed by Public Bank Bhd with the second highest net money inflow of RM2.74 million.
IOI Corporation Bhd saw the third highest net money inflow of RM2.47 million.
On outflows, Malayan Banking Bhd saw the largest net money outflow of 15.59 million last week.
Malaysia Airports Holdings Bhd recorded the second largest net money outflow RM12.11 million during the week under review while CIMB Group Holdings Bhd registered the third largest net money outflow of RM8.47 million.