Lowest selling on Bursa in 11 weeks

KUALA

LUMPUR: The momentum of foreign net selling on Bursa Malaysia substantially slowed down last week as international investors sold RM87.9 million net of local equities – the lowest seen in 11 weeks.

MIDF Amanah Investment Bank Bhd (MIDF Research) saw that for April, offshore investors took out RM2.67 billion net of local equities which was more than half of what was sold in March.

“In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third smallest foreign net outflow on a year-to-date basis after Indonesia and the Philippines,” it said in a note yesterday.

The year-to-date foreign outflow from Malaysia came to RM10.30 billion.

Meanwhile, Bursa Malaysia began the week on a gloomy note as foreign investors pulled out RM115.8 million net of local equities. This was in spite of the announcement of more stimulus measures by the Bank of Japan which includes the additional purchase of commercial papers and corporate bonds.

“Foreign net selling activity dipped on Tuesday to minus RM95.4 million

In comparison to its other six Asian peers that we monitor, Malaysia remains as the nation with the third smallest foreign net outflow on a year-to-date basis a er Indonesia and the Philippines.

MIDF Research

as investors acknowledged progress in the global fight against the coronavirus but remained cautious amidst a painful earnings period,” it detailled.

“Wednesday then saw a massive drop in foreign net outflow to RM0.8 million. Most Asia-Pacific stocks gained Wednesday on cautiously positive sentiment that steps by governments around the globe to ease lockdowns will not set off a new deadly round of the respiratory illness.

The tables were turned on Thursday, the last trading day of April as foreign investors scooped up RM124.5 million net of local equities. The local bourse followed suit to gain two per cent higher, settling above 1,400 points As such, the 11day selling streak on Bursa was snapped.”

MIDF Research observed that tisk-on sentiment was sparked by the eff ectiveness of a drug by Gilead Sciences against the Covid-19 pandemic.

“In terms of participation, foreign investors saw a 9.4 per cent weekly decline in its average daily traded value (ADTV), the largest amongst other investor groups,” it added. “Nevertheless, the absolute ADTV of foreign investors remained healthy above the RM1 billion mark.”

MISC Bhd registered the highest net money inflow of RM12.76 million last week, followed by Hong Leong Bank Bhd in second place with RM4.39 million and British American Tobacco Bhd in third with RM4.10 million.

Tenaga Nasional Bhd saw the largest net money outflow of RM8.44 million last week. Top Glove Corporation Bhd followed suit with RM6.24 million and IHH Healthcare Bhd with RM4.94 million.