Momentum of offshore investor selling slows slightly

KUALA LUMPUR: The momentum at which offshore investors are reduced their exposure in Bursa Malaysia slowed down slightly last week.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), international investors sold RM714.7 million net of local equities last week compared to the RM843.2 million disposed in the week before.

In comparison to its other six Asian peers monitored by MIDF Research, Malaysia remained as the nation with the third smallest foreign net outflow on a year-to-date basis after Indonesia and the Philippines.

“Foreign investors have so far taken out RM12.6 billion net of local equities from Malaysia,” MIDF Research said. “Bursa began the week with a foreign net outflow of RM122.3 million on Monday.

“Meanwhile, trading volume on Bursa reached another record high of 11.2 billion shares on the same day supported by trading in oil and gas and infrastructurerelated stocks on the back of strong energy prices and the prospects of a restart of mega-projects.”

MIDF Research highlighted that the level of foreign net selling declined slightly to RM93.8 million on Tuesday sparked positive Covid19 vaccine trial results by drugmaker, Moderna.

The research arm further highlighted that the 10-day foreign net selling spree was snapped on Wednesday as foreign funds snapped up RM0.7 million net of local equities.

“The entrance of off shore investors into Bursa was driven by the prospects for an additional government stimulus from Beijing.

“Nevertheless, the foreign net inflow was shortlived as foreign investors were back in selling mode at a tune of RM178.9 million on Thursday.

“Riskoff sentiment prevailed as the US Senate passed a bill that could bar Chinese companies from listing on American exchanges.”

MIDF Research went on to note that foreign net selling surged to RM320.3 million, the highest during the week as investors anticipated an escalation of US-China tensions after Beijing effectively proposed that China security laws be applied inside Hong Kong.

“In terms of participation, only foreign investors saw a weekly drop in their average daily traded value (ADTV).

“Foreign investors recorded a weekly decline in ADTV of 0.4 per cent to remain above the healthy RM1 billion mark.”

Overall, CIMB Group Holdings Bhd registered the highest net money inflow of RM12.02 million last week, followed by Tenaga Nasional Bhd with the second highest net money inflow of RM6.61 million. KLCCP Stapled Group saw the third highest net money inflow of RM5.52 million.

On outflows, Public Bank Bhd saw the largest net money outflow of 40.32 million last week.

Top Glove Corporation Bhd recorded the second largest net money outflow RM18.02 million during the week under review while Petronas Gas Bhd registered the third largest net money outflow of RM7.6 million in the review week.

Foreign investors have so far taken out RM12.6 billion net of local equities from Malaysia.

MIDF Research