Foreign selling on Bursa picks up to RM948.1m
PETALING JAYA: Foreign investors turned more aggressive in their trading of Malaysian stocks last week, selling RM948.1 million, said MIDF Research.
“Foreigners dumped RM948.1 million last week, the fifth highest weekly outflow this year. This is estimated based on transactions in the open market which excluded off market deals,” it said in its fund flow report yesterday.
“Net foreign selling dominated the entire trading week. The attrition turned ugly in the last two days of the week as the amount offloaded exceeded RM250 million per diem. On Friday, the liquidation hit RM348.6 million, the third highest in a day this year,” it added.
According to MIDF Research, the cumulative year-to-date net foreign purchase of Malaysian-listed shares is now only RM1.06 billion, down from a peak of RM6.47 billion in April.
Foreign investors have redeemed RM5.41 billion since April, compared with RM19.5 billion and RM6.9 billion net outflow in 2015 and 2014 respectively, it added.
Meanwhile, foreign participation rebounded sharply last week with foreign average daily value of shares traded (ADTV) rising 15% to RM843 million.
“Still, it was relatively moderate. The last time it broke the RM1 billion mark was five weeks ago,” said MIDF Research.
It said the market was heavily supported by local institutions last week as retail participation remained depressingly weak.
“Retail ADTV remained below RM500 million five weeks in a row now. We reiterate that the market has not seen the extent of retail withdrawal since early 2013,” it said.