International funds turned net sellers on Bursa last week
KUALA LUMPUR: International funds turned net sellers on Bursa Malaysia last week, snapping the five-week buying spree on Bursa, analysts observe in the latest fund flow report.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on data from Bursa, foreign funds took out RM369.2 million net of local equities. This was the largest weekly foreign net outflow in eight weeks.
“On a daily basis, the five-day foreign net buying streak came to an end on Monday as global funds sold RM41.6 million net of local equities,” MIDF Research said.
“However, foreign investors slowly returned to Bursa on Tuesday at a tune of RM6.6 million net, the lowest level in a day since early November last year.”
MIDF Research also noted that RM122.1 million net of equities were taken out by foreign funds on Wednesday as investors ignored President Trump’s flexibility on the deadline for trade negotiations with Beijing.
“Likewise, the local bourse shed 2.11 points or 0.1 per cent to end at 1,685 points, the lowest close during the week.
“Meanwhile, other Asian peers namely South Korea and Taiwan recorded sizeable foreign net inflows.”
The research arm highlighted that while foreign net selling still occurred on Thursday and Friday, the pace slowed down to RM106.4 million and RM105.7 million, respectively.
It further highlighted that Malaysia’s fourth quarter of 2018 (4Q18) gross domestic product (GDP) growth of 4.7 per cent year on year (y-o-y) which was above market expectations of 4.5 per cent y-o-y estimates helped to ease the jitters coming from the deceleration in China’s factory inflation in January 2019 which slowed down for the seventh uninterrupted month.
“For the first half of February 2019, offshore investors have so far disposed RM206 million net, lowering the year-to-date foreign net inf low into Malaysia to RM820.1 million.
“On the regional front, Malaysia is now the nation with the lowest foreign net inflow amongst the four Asean markets we monitor with Indonesia taking the lead with a yearto-date net inflow above RM3 billion while Thailand is the only one with a net outflow.”
On another note, MIDF Research pointed out that participation amongst all investor groups increased during the week.
“Foreign investors recorded the smallest weekly advance in average daily traded value (ADTV), increasing by 15.3 per cent to breach above the healthy level of RM1 billion.”
Overall, Kuala Lumpur Kepong Bhd registered the highest net money inf low of RM22.11 million last week, followed by Petronas Chemicals Group Bhd with the second highest net money inf low of RM12.17 million.
Hartalega Holdings Bhd saw the third highest net money inflow of RM5.73 million.
On outflows, Public Bank Bhd saw the largest net money outflow of RM34.39 million last week.
Genting Bhd recorded the second largest net money outf low RM17.06 million during the week under review while CIMB Group Holdings Bhd registered the third largest net money outflow of RM8.94 million.