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KUALA LUMPUR: Offshore investors lessened the pace of net selling on Bursa Malaysia, almost halving to a tune of RM339.4 million net of local equities last week as compared to RM624.7 million in the preceding week.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), this was the 20th consecutive week of foreign net selling.

“So far in 2020, foreign investors have sold RM16.7 billion net on Bursa,” MIDF Research said.

In comparison with the other six Asian markets the research arm tracked, Malaysia still

has the fourth smallest foreign net outflow on a yearto-date basis.

“As markets reopened on Monday last week, international investors took out RM12.7 million net of local equities which was a similar trend for all South East Asian markets on fear of the global surge of Covid-19 cases over the weekend, dampening hope on a faster economic recovery.

“Note that the foreign net outflow occurred on every day last week with Wednesday recorded the highest foreign net outflow at a tune of RM142.1 million which coincided with the decline in Malaysia’s Producer Price

So far in 2020, foreign investors have sold RM16.7 billion net on Bursa.

MIDF Research

Index (PPI) in May for the third consecutive month.

“However, foreign net outflow started to subside on Thursday and Friday with the lowest

foreign net outflow of the week on Friday at a tune RM8.4 million.”

MIDF Research highlighted that the lower foreign net selling on Thursday and Friday was probably due to positive news flow on the sharp rebound of the local manufacturing sector with a PMI score of 51 in June, and optimistic economic data from the US and China.

It further highlighted that as a result, the KLCI Index closed higher by about 4.3 per cent to 1,552.6 points last week.

In comparison to another three South East Asian markets that the research arm tracked, Malaysia recorded the lowest foreign net outflow followed by Indonesia and Thailand last week.

“The Philippines was the only market that registered a foreign net inflow.”

MIDF Research noted that in terms of participation, retail and institutional groups recorded a weekly increase in their average daily traded value (ADTV) by double-digit of 38.7 per cent and 36.7 per cent respectively while the foreign investors experienced the smallest weekly increase in their ADTV by 3.1 per cent to reach RM907.3 million which was below the healthy level of RM1 billion.

Overall, Public Bank Bhd registered the highest net money inflow of RM11.35 million last week, followed by MISC Bhd with the second highest net money inflow of RM8.63 million.

Time DotCom Bhd saw the third highest net money inflow of RM8.22 million.

As for outflows, Top Glove Corporation Bhd saw the largest net money outflow of 51.91 million last week.

Inari Amertron Bhd recorded the second largest net money outflow RM5.24 million during the week under review while MY EG Services Bhd registered the third largest net money outflow of RM3.71 million.