Foreign selling on Bursa exceeds RM5b year to date

Malaysian bourse saw net outflow of RM1.91b last week but amount is less than that of Asian peers

PETALING JAYA: Another week, another billion ringgit outflow. Last week, international investors took out RM1.91 billion net of local equities, but this is still comparatively less than Malaysia’s Asian peers.

In a note by MIDF Research yesterday, Malaysia has the second least foreign net outflow when compared on a year-to-date basis.

“Last week’s foreign net selling brings the year-to-date foreign net outflow from Malaysia to RM5.21 billion,” it said.

Last week, Bursa saw RM459.9 million in foreign net selling on Monday, triggered by the slump in oil price due to Saudi Arabia, Russia and other oil producers failing to agree on cutting output.

The pace at which foreign investors were selling local equities decelerated to RM257 million net on Tuesday.

“Bargain hunting activity offered some relief to the local bourse which eked out a 0.4% gain on the same day but not enough to lift it beyond the 1,450-point territory,” said MIDF.

Foreign net selling gained momentum on Wednesday to reach RM320.3 million despite gains on Wall Street on hopes that the Trump administration will act to cushion the economic pain of the virus outbreak.

On Thursday, after the World Health Organisation declared the coronavirus a global pandemic, the foreign net outflow continued to increase to RM375.4 million.

Meanwhile, Friday the 13th brought wild swings for Bursa as the local stock barometer faced its worst day since 2008, declining by 5.3% to settle at 1,344.8 points.

As such, international funds dumped equities listed on Bursa at a tune of RM482.7 million.

In terms of participation, MIDF said the average daily traded value of foreign investors recorded the smallest gain of 13.1% for the week and remained at a healthy level of RM1.72 billion.

Malayan Banking Bhd registered the highest net money inflow of RM15.61 million last week. Its share price declined 7.29% for the week, outperforming the local bourse which had a 9.33% weekly drop.

“Nonetheless, it is notable that net money inflow amidst retreating share price may indicate a buy on weakness stance among some investors.”