Bursa Malaysia sees largest weekly outflow this year

KUALA LUMPUR: Foreign investors disposed RM298 million last week which was the largest weekly outflow this year.

Foreign investors consolidated their position on Bursa last week following the four-day weekend break due to Hari Raya Puasa. According to MIDF Amanah Investment Bank Bhd (MIDF Research), the lack of local participation was noticeable.

“The heaviest foreign selling was recorded on Friday with net disposals surging to RM228.4 million as fund managers rationalised position as the second quarter came to a close,” it highlighted in a note yesterday.

“We note that in June, foreign investors acquired RM344.4 million net of local equity, the lowest in a month this year.”

Nonetheless, MIDF Research noted that foreigners had built a solid position on Bursa Malaysia within the first halfo of 2017, buying six months in a row.

Cumulative foreign buying on Bursa surged substantially to RM10.2 billion or an estimated US$2.3 billion in the first half, which was the highest among South East Asian peers.

The next biggest recipient in South East Asia was the Jakarta bourse, recording a surplus of US$1.3 billion.

“Foreign participation was healthy last week despite the short trading week,” it added. “Foreign average daily trade value (ADTV) increased by 26 per cent for the week, from RM989.6 million to RM1.24 billion.

“Indeed, foreign trading was active on Wednesday and Friday as the trading value exceeded RM1 billion for both days.

“In contrast, the retail market resumed its sluggish pace. Retail ADTV was slightly unchanged at RM627.5 million, being under the RM1 billion mark for the fifth week running.” Looking at money flows, British American Tobacco Bhd’s stocks were the beneficiary of the highest net money inflow of RM55.68 million. This was followed by KL Kepong Bhd which amounted to RM32.08 million and Malaysia Airport Holdings Bhd with the third highest net money inflow of RM8.37 million.

Meanwhile, Public Bank Bhd saw the largest net money outflow of RM23.32 million last week. Gamuda Bhd stood in second place with RM21.80 million, while Dialog Group Holdings Bhd registered the third largest net money outflow at RM8.42 million.