For­eign in­vestors off­load RM397m eq­ui­ties

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: For­eign in­vestors off­loaded RM396.8 mil­lion last week, the high­est amount since the sec­ond week of Septem­ber but for­eign par­tic­i­pa­tion rate was low, said MIDF Re­search.

“Gen­eral for­eign in­vestor ac­tiv­ity on Bursa re­mained sup­pressed last week, but there was a no­table pick-up in trad­ing ag­gres­sive­ness. Ex­cept on Mon­day, when there was mar­ginal for­eign buy­ing, sell­ing dom­i­nated the rest of the trad­ing week,” it said in its fund flow re­port yes­ter­day.

It said that for­eign­ers sold RM162.6 mil­lion on Wed­nes­day and RM220 mil­lion on Thurs­day. Note that the RM220 mil­lion at­tri­tion on Thurs­day was the 24th day that the amount had ex­ceeded RM200 mil­lion this year.

“Last week’s at­tri­tion re­duced the cu­mu­la­tive net for­eign in­flow into shares listed on Bursa to an es­ti­mated RM2 bil­lion, down from a peak of RM6.47 bil­lion, which was the fig­ure in April.

“This means that since April, for­eign in­vestors have re­deemed about RM4.47 bil­lion. The amount is still mod­est rel­a­tive to the RM19.5 bil­lion and RM6.9 bil­lion net out­flow in 2015 and 2014 re­spec­tively,” it added.

MIDF Re­search said gen­eral in­vestors’ par­tic­i­pa­tion de­te­ri­o­rated sharply last week with the av­er­age daily value of shares traded (ADTV) of for­eign­ers drop­ping 18% to RM734 mil­lion, the third low­est in a trad­ing week this year.

“It was even lower than the ADTV recorded dur­ing the Chi­nese New Year and Hari Raya weeks,” it said.

Mean­while, re­tail par­tic­i­pa­tion re­mained weak even af­ter the Bud­get 2017 an­nounce­ment.

“Re­tail ADTV has dipped be­low RM500 mil­lion four weeks in a row now. The mar­ket has not seen the ex­tent of re­tail with­drawal from the mar­ket since early 2013.”

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