Foreign funds net sellers on Bursa Malaysia last week
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.