Bursa Malaysia sees net outflow of RM481.7 million last week
KUCHING: The positive net foreign fund flow into Bursa Malaysia recorded in the week ended December 16, its first since before the US election in November, was just short-lived as it witnessed a net outflow of RM481.7 million by foreign funds last week.
This is compared to a net purchase of RM44 million in the prior week ended December 16.
The research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) in a report yesterday said foreign fund flow turned negative on Malaysian equity last week.
“The net amount sold by foreigners on Bursa last week was RM481.7 million as compared to the prior week’s net purchase of RM44 million.
“Nevertheless, as stated earlier, the negative foreign fund flow last week was equally prevalent in many other Asian equity markets.
“Throughout the whole week on net daily basis, foreign investors have been selling off their investments.
“The highest attrition was on Friday (December 23) of RM163.4 million and the lowest was on Tuesday (December 20) of RM18.3 million,” the research firm said.
On a cumulative year to December 23, MIDF Research observed that the amount of net selling by foreign investors this year has expanded further to RM3 billion.
However, as compared to last year, it noted the outflow amount was still relatively low against the RM19.5 billion of net money outflow recorded in 2015.
Meanwhile, MIDF Research observed that retail investors’ gross participation rate continued to expand to RM392.6 million last week from RM378.5 million recorded in the prior week ended December 16.
The research firm noted the higher participation rate was in-line with the higher buying on dips conviction which surged to RM84.9 million from RM14.1 million during the week ended December 16.
On the other hand, MIDF Research said the gross participation rate of institutional investors fell to RM1.67 billion last week from RM1.93 billion recorded in the prior week.