Bursa foreign net outflows’ momentum tapered in first week of 2019
KUCHING: The momentum of foreign net outflows from Bursa Malaysia tapered last week but extended the weekly foreign selling streak to nine weeks, analysts observed in the latest fund flow report.
According to the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research), based on data from Bursa, foreign funds sold RM54.4 million net of local equities last week, less than half of the amount disposed in the previous week.
“Onnewyear’seve, international investors sold RM36.1 million net on Bursa following the drop in China’s factory activity for the first time since 2016,” MIDF Research said.
“The local bourse remained flat, only ending 0.1 per cent lower at 1,691 points on Monday.
“It was also notable that the FBM KLCI gained 56 points since it hit its lowest level in 2018 of 1,635 points on December 18, 2018.”
MIDF Research noted that Bursa kicked off 2019 on a sombre note as foreign funds sold RM55.4 million on Wednesday, bringing the foreign net selling streak to 12 days, the longest since the 37- day selling spree recorded from early May to late June 2018.
“Despite Apple’s slash in revenue guidance, foreign investors disregarded the news and took the opportunity to buy RM64.6 million net on Thursday, the largest daily inflow in more than two weeks.”
On foreign funds, the research arm highlighted that it reverted to selling mode on Friday albeit at a moderate pace of RM27.5 million net.
It further highlighted that optimism sparked by the China’s services gauge was outweighed by disappointing US manufacturing data as the ISM manufacturing index fell to 54.1 last month, the lowest level since November 2016.
“For the first three trading days of 2019, foreign funds pulled out -RM18.3m net or -US$ 4.5m net of equities from Bursa.
“This is substantially lower than Thailand’s outflow of US$ 130.4 million net while Indonesia and the Philippines saw a net inflow of US$ 54.9 million and US$ 23.1 million, respectively.”
Meanwhile, MIDF Research also noted that the participation rate amongst the various group of investors saw an increase across the board.
“The average daily traded value (ADTV) of foreign investors registered the largest weekly advance of 36 per cent but was still below the healthy level of RM1 billion.”
Overall, Hong Leong Bank Bhd registered the highest net money inflow of RM12.17 million last week, followed by CIMB Group Holdings Bhd recorded the second highest net money inflow of RM5.59 million. Malaysia Airports Holdings Bhd saw the third highest net money inflow of RM4.47 million.
On outflows, Nestle ( Malaysia) Bhd saw the largest net money outflow of RM15.71 million last week. Public Bank Bhd recorded the second largest net money outflow RM8.54 million during the week under review while Genting Bhd registered the third largest net money outflow of RM5.67 million.