Offshore investors mark fifth straight week of exiting Malaysia
KUCHING: Offshore investors marked their fifth straight week of exiting Malaysia but at a slower pace, analysts observed in the latest fund flow report.
According to the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research), foreign net selling occurred from Monday to Thursday, stretching the daily selling spree to 16 days, the longest since the 37- day selling streak from early May to end of June 2018.
“Based on data from Bursa Malaysia, foreign funds pulled out RM421 million net of local equities, less than half of the amount sold in the preceding week,” MIDF Research said.
“Malaysia recorded a sizeable foreign net outflow on Monday of RM272.3 million, a level not seen
since late November last year.
“Nonetheless, the magnitude of foreign attrition was not as high compared to North Asian peers such as South Korea and Taiwan which saw foreign net selling levels above RM400 million.
“The local bourse followed suit to dip by 0.9 per cent on the same day to close at 1,664 points, the lowest close so far in 2019.”
MIDF Research highlighted that the level of foreign net selling dipped below RM100 million to RM60.9 million on Tuesday following the unexpected rise in January’s US retail sales overnight.
“However, the amount withdrawn by offshore investors more than doubled to RM125.6 million the next day.”
The research arm also highlighted that another series of tapering outflows happened again on Thursday as only RM13.4 million net was sold.
It pointed out that the rebound in US business equipment orders to reach the highest in six months helped outweigh the fall the China’s industrial output to a 17-year low in the first two months of the year.
“Nevertheless, global funds bought RM51.3 million net on Friday, snapping the 16- day selling streak on Bursa as China pledges to stick to its targeted stimulus with tax cuts beginning in April 2019.”
MIDF Research noted that in the first two weeks of March 2019, foreign funds have sold RM1.48 billion net.
The research arm thus noted that foreign funds have withdrawn RM1.27 billion net from Malaysia on a year-to- date basis.
“On the regional front, Malaysia is still the nation with the only foreign net outflow amongst the four Asean markets we track.
“Indonesia still retains the lead with a foreign net inflow of US$ 686.9 million or above RM2.5 billion ahead of its presidential and general election in April 2019.”
Overall, Nestle ( Malaysia) Bhd registered the highest net money inflow of RM8.39 million last week, followed by MY EG Services Bhd with the second highest net money inf low of RM8.2 million.
Petronas Gas Bhd saw the third highest net money inflow of RM7.71 million.
On outflows, IHH Healthcare Bhd saw the largest net money outflow of RM14.72 million last week.
KLCCP Stapled Group recorded the second largest net money outflow RM8.58 million during the week under review while CIMB Group Holdings Bhd registered the third largest net money outflow of RM7.11 million.