Overseas investors continue to pare holdings in Bursa stocks
KUCHING: Overseas investors continue to pare their holdings in stocks listed on Bursa Malaysia for the 10th consecutive week.
According to the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research), this is the longest weekly selling streak recorded since the 20-week selling spree from May to September 2015.
MIDF Research noted that based on preliminary data from Bursa which excluded off market deals, the amount sold by foreign funds last week retreated was little changed at US$ 704.3 million net compared to the US$ 705.4 million net seen last week.
“Foreign investors were net sellers on every single day of the week. It was notable that the magnitude of foreign net selling from Monday to Thursday was rather contained, only ranging from RM45 million to US$ 100 million.
“During this period of modest selling activity, the highest daily outflow of US$ 100.4 million occurred on Tuesday, coinciding with the FBM KLCI’s lowest closing point of 1,680 points within the same period,” the research arm said.
MIDF Research highlighted that foreign attrition later surged on Friday to a tune of RM393.6 million net, the highest in a day since June 21, 2018.
It further highlighted that the huge attrition was in conformity with other regional peers namely South Korea and the Philippines.
“It was no doubt that the main cause for Friday’s major selloff was due to the US- China trade dispute whereby the US officially activated a 25 per cent tariff on US$ 34 billion of Chinese goods followed by an immediate titfor-tat measure by the Chinese government.”
MIDF Research pointed out that the cumulative year-to- date outflow from Malaysia as of last Friday stands at RM7.53 billion net, offsetting approximately 75 per cent of last year’s total foreign inflow of RM10.33 billion net.
Nevertheless, Malaysia still has the second lowest outflow amongst the four Asean markets the research arm monitors after the Philippines on a year-to- date basis.
As for foreign participation, MIDF Research noted that it took a breather last week as foreigners retreated to the sidelines amidst the intensified trade tensions.
“Foreign average daily traded value (ADTV) substantially declined by 26 per cent to hit below RM1 billion,” it said. “The retail market meanwhile remained healthy although its ADTV was little changed at RM807.7 million.”
Overall, Tenaga Nasional Bhd registered the highest net money inflow of RM10.24 million last week, followed by Public Bank Bhd which recorded the second highest net money inflow of RM9.7 million.
Genting Malaysia Bhd saw the third highest net money inflow of RM7.97 million.
On outflows, Malayan Banking Bhd saw the largest net money outflow of RM17.19 million last week.
MY EG Services Bhd recorded the second largest net money outflow RM5.85 million during the week under review while Top Glove Corporation Bhd registered the third largest net money outflow at RM5.23 million.