Investors resume selling activity on Bursa for third week

KUCHING: International investors resumed their selling activity on Bursa Malaysia for the third uninterrupted week, analysts observed in their latest fund flow report.

According to the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research), based on preliminary data from Bursa Malaysia which excluded off market deals, foreign funds sold RM52.3 million net of local equities last week which is less than half the amount withdrawn in the preceding week.

“Monday saw a decent amount of foreign net inflow worth RM34 million, coinciding with the FBM KLCI’s largest daily gain during the week of 0.25 per cent,” MIDF Research.

“Support on Monday came from stalwarts in the banking sector such as CIMB Group Holdings Bhd, Malayan Banking Bhd and Public Bank Bhd in addition to plantation stocks.

“Markets were closed on Tuesday in conjunction with the Maulidur Rasul holiday.”

MIDF Research noted that as markets reopened on Wednesday, international funds withdrew RM151.7 million net of local equities, the biggest foreign attrition during the week.

“This follows the sharp 6.4 per cent drop in Brent crude oil price overnight as concerns of a global oversupply continue looming. “The massive outflow was in conformity with other regional peers, namely South Korea and Thailand.”

However, the research arm pointed out that foreign investors shifted back into buying mode on Thursday, accumulating RM51.5 million net while the local bourse was little changed, only gaining 0.25 points.

“Interestingly, Malaysia fared better than the regional peers mentioned above as they still experienced outflows.

“Foreign inf lows were seen again on Friday but at a measurable level of RM14 million net as uncertainty in global trade continues to haunt the Asian region.”

Overal l , MIDF Research highlighted that November is poised to be another month of outf lows with the month- todate outflow as of last Friday amounting to RM474.1 million net.

While foreign investors have sold RM10.42 billion of local equities on a year-to- date basis which offsets last year’s inflow of RM10.33 billion, Malaysia still has the second lowest foreign net outf low amongst the four Asean markets the research arm monitored.

Last week saw Sime Darby Plantations Bhd registering the highest net money inflow of RM3.9 million, followed by Genting Bhd with the second highest net money inf low of RM3.78 million.

British American Tobacco Bhd recorded the third highest net money inf low of RM2.88 million.

On the other hand, Tenaga Nasional Bhd saw the largest net money outflow of RM16.06 million last week.

Top Glove Corporation Bhd recorded the second largest net money outflow RM10.59 million during the week under review while Hong Leong Financial Group Bhd registered the third largest net money outf low of RM8.54 million.