Offshore funds remained as net sellers on Bursa Malaysia for second week

KUALA LUMPUR: Offshore funds remained as net sellers on Bursa Malaysia for the second week, analysts observe in the latest fund flow report, marking the third weekly inflow so far this year.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on data from Bursa, foreign funds took out RM319 million net of local equities which was not much of a change from the RM369.2 million net outflow in the preceding week.

“Monday recorded a foreign net inflow of RM118.1 million net, the highest inflow recorded during the week amidst signs of progress from the US-China trade negotiations,” MIDF Research said.

“Global investors later disposed RM47.7 million net of local equities on Tuesday while the local bourse inched 0.8 per cent to close above 1,700 points for the first time since January 25, 2019.”

MIDF Research highlighted that foreign funds made a modest return, snapping up RM27 million net on Wednesday, coinciding with the FBM KLCI’s biggest daily gain since late December 2018 of 1.15 per cent.

“The rally was partly attributable to Wall Street’s modest start to the week as well as rising Brent crude oil price which climbed above US$66 per barrel.”

That said, the research arm noted foreign net selling was back on Bursa on Thursday to a tune of RM116.2 million which then swelled to RM300.2 million on Friday.

It further noted that much of the sentiment was affected by the Malaysia’s consumer prices declining by 0.7 per cent year on year (y-o-y) in January, the first contraction since 2009.

“With 4 trading days left in the month of February 2019, foreign investors have so far disposed RM525.1 million net, bringing the year-to-date foreign net inflow into Malaysia to RM501.4 millon or US$120.4 million.”

On the regional front, Malaysia remains as the nation with the lowest foreign net inflow amongst the four Asean markets the research arm monitored with Indonesia taking the lead with a year-to-date net inflow of US$755.8 million or approximately RM3 billion.

On participation amongst all investor groups, MIDF Research highlighted that it increased during the week.

“Foreign investors recorded the largest weekly advance in average daily traded value (ADTV), increasing by 41 per cent to remain above the healthy level of RM1 billion.”

Overall, UMW Holdings Bhd registered the highest net money inflowofRM17.16millionlastweek, followed by Malayan Banking Bhd with the second highest net money inflow of RM15 million.

Top Glove Corporation Bhd saw the third highest net money inflow of RM9.88 million.

As for outflows, Public Bank Bhd saw the largest net money outflow of RM36.07 million last week.

CIMB Group Holdings Bhd recorded the second largest net money outflow RM26.16 million during the week under review while Tenaga Nasional Bhd registered the third largest net money outflow of RM21.07 million.