Foreign funds net sell­ers on Bursa Malaysia last week

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Bursa Malaysia was not spared the re­gional out­flow of funds last week, with a sell-off of RM227.4 mil­lion net by foreign funds, ac­cord­ing to MIDF Re­search.

This com­pares with an in­flow of RM118.8 mil­lion the week prior.

MIDF Re­search said in a note yes­ter­day that the pullout was in line with other re­gional mar­kets as the ring­git weak­ened fur­ther to 4.19 against the US dol­lar.

The re­search house noted that this week, all eyes will be on the tabling of Bud­get 2017 on Friday.

Last week, ex­cept for Tues­day (+RM12.4 mil­lion), foreign in­vestors were net sell­ers on Mon­day (-RM25.2 mil­lion), Wednesday (-RM108 mil­lion), Thursday (-RM46 mil­lion) and Friday (-RM100.2 mil­lion).

MIDF Re­search said for­eign­ers’ par­tic­i­pa­tion rate fell from RM1.04 bil­lion the week ear­lier to RM783.2 mil­lion last week. Year-to-date, cu­mu­la­tive net foreign in­flow con­tracted to RM2.19 bil­lion com­pared with RM2.42 bil­lion in the week be­fore.

In ret­ro­spect, for­eign­ers off­loaded RM19.5 bil­lion in 2015 and RM6.9 bil­lion in 2014.

MIDF Re­search said lo­cal in­sti­tu­tions turned net buy­ers dur­ing the week, load­ing up RM309.5 mil­lion worth of shares af­ter hav­ing dis­posed of RM30.9 mil­lion worth in the pre­ced­ing week.

“Lo­cal funds were buy­ers on Mon­day (+RM44.7 mil­lion), Wednesday (+RM136 mil­lion), Thursday (+RM51.6 mil­lion) and Friday (+RM109.7 mil­lion). On the other hand, they sold stocks on Tues­day (-RM32.5 mil­lion),” it noted.

Mean­while, re­tail­ers con­tin­ued to sell stocks for the third suc­ces­sive week, of­fload­ing eq­ui­ties worth RM82.1 mil­lion.

“In the week ear­lier, they sold RM87.9 mil­lion. They were net sell­ers ev­ery sin­gle day last week,” MIDF Re­search said.

None­the­less, the par­tic­i­pa­tion rate for all three cat­e­gories of in­vestors de­clined last week due to the change of macro out­look.

“There were no vis­i­ble cat­a­lysts lo­cally,” the re­search house added.

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