Foreign investors continue selling for seventh week
KUCHING: Foreign investors stood firm in their selling positions for the seventh week, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) observed in its latest fund flow report.
MIDF Research noted that in the past seven weeks, the average level of net foreign selling stood at RM250.9 million.
“The net amount sold by foreign investors on Bursa last week was RM464.1 million, the highest since October,” the research arm said.
“The amount sold was also substantially higher than the RM314.3 million net recorded in the week before.”
According to MIDF Research, foreign investors sold Malaysian equity throughout the week.
The research arm highlighted that the quantum sold edged up on the days following Monday, due to oil price slump and US rate hike guidance.
“Foreign withdrawals peaked on Thursday at RM143.7 million, about one third higher from the previous trading day.
“The concerns over oil situation were seen rising as the crude oil price fell about 5.1 per cent on Thursday.
“On Friday, the Brent settled at US$ 53.8 per barrel, the lowest levels for more than a year on worries of oversupply.”
MIDF Research also noted on the heavy sell-off on Thursday which coincided with the - 0.31 per cent dip in the FBM KLCI.
The research arm pointed out that it reversed earlier losses to close higher at 1,670 points on Friday.
“The rebound was led by window dressing and FBMKLCI index rebalancing activities with heavyweights namely Tenaga Nasional Bhd ( TNB), Petronas Dagangan Bhd ( Petronas Dagangan) and Sime Darby Plantation Bhd emerged as top gainers, with Telekom Malaysia Bhd and KLCCP Stapled REITS being replaced by Top Glove Corporation Bhd and AMMB Holdings Bhd in the FBMKLCI index.
“This week, index is expected to continue gaining supports on the likelihood of further window dressing activities ahead of the year- end.”
As for the month of December, MIDF Research said that cumulative foreign net outflow amounted to RM858.7 million, a third consecutive month of attrition.
It added that with one more week before 2018 ends, the cumulative net outflow thus far this year into shares listed on Bursa has expanded to RM11.5 billion.
Malaysia remained as the nation with the second lowest year-todate outflow amongst the seven Asian markets the research arm monitored.
As for foreign participation rate, MIDF Research noted that it gained momentum last week as the foreign average daily trade value (ADTV) surged strongly by 16.1 per cent to reach above the RM1 billion mark to settle at RM1.2 billion.
“Gross trade of foreigners were above RM1 billion on four out of five trading days.”
Meanwhile, the research arm said that retail market followed suit, advancing 17.6 per cent higher to settle below the RM1 billion mark at RM706.1 million.
Overall, CIMB Group Holdings Bhd registered the highest net money inflow of RM13.4 million last week, followed by Fraser & Neave Holdings Bhd recorded the second highest net money inflow of RM6.51 million.
Petronas Dagangan saw the third highest net money inflow of RM4.12 million.
On outflows, Genting Bhd saw the largest net money outflow of RM8.34 million last week.
Dialog Group Bhd recorded the second largest net money outflow RM8.11 million during the week under review while TNB registered the third largest net money outflow of RM8.05 million in the review week.