M’sia’s equity outflow lowest in Asean
KUALA LUMPUR: The foreign net buying activity on Bursa Malaysia was short-lived as offshore funds turned net sellers last week, analysts observed in the latest fund flow report.
Nevertheless, according to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), international investors have thus far sold RM335.8 million net, the lowest amongst its Asean peers.
“Bursa began the week on the right foot a er a long weekend as international funds snapped up RM56.8 million net on Tuesday, li ing the local bourse 0.2 per cent higher to se le at 1,604.3 points, the highest close in five trading days.
“The entrance of foreign funds into stocks listed on Bursa bucked the trend as other markets experienced foreign net outflows following the drone a ack on Saudi Arabia’s oil facilities.”
That said, MIDF Research noted that international funds started to gradually reduce their exposure from Wednesday until the week ended.
The research arm further noted that Wednesday saw a foreign net outflow of RM40.5 million net as the anticipation of the Federal Reserve’s decision on interest rates outweighed the positivity from Saudi Arabia’s partial restoration of oil its production.
“The pace of foreign net outflow more than doubled to hit RM97.6 million net on Thursday following the second rate cut this year by the Federal Reserve.
“Worries were partially caused by the US policy makers were divided on the need for further easing following Wednesday’s rate cut.
“The local stock market barometer followed suit to decline the most during the week by 0.3 per cent.”
On Friday, MIDF Research highlighted that foreign net selling activity inched higher
Bursa began the week on the right foot a er a long weekend as international funds snapped up RM56.8 million net on Tuesday, li ing the local bourse 0.2 per cent higher to se le at 1,604.3 points, the highest close in five trading days.
MIDF Research
to RM169.9 million despite the series of stimulus measures by other major central banks during the week.
“On a year to date basis, international funds have taken out RM7.68 billion worth of local equities from Bursa.”
MIDF Research also highlighted that in terms of participation, foreign investors experienced the largest weekly gain of 55.8 per cent in the average daily traded value (ADTV) to remain above the RM1 billion mark at RM1.79 billion.
Overall, Kuala Lumpur Kepong Bhd registered the highest net money inflow of RM17.36 million last
week, followed by Petronas Chemicals Group Bhd with the second highest net money inflow of RM14.77 million.
CIMB Group Holdings Bhd saw the third highest net money inflow of RM7.88 million.
On outflows, Public Bank Bhd saw the largest net money outflow of RM13.1 million last week.
Dialog Group Bhd recorded the second largest net money outflow RM3.64 million during the week under review while Hartalega Holdings Bhd registered the third largest net money outflow of RM1.7 million in the review week.
“So far in 2019, there has been 25 weeks of foreign net selling,” MIDF Research said.