MIDF Research says based on preliminary data from Bursa Malaysia, the amount sold by global funds last week had been reduced by more than half to RM247.1 million net from RM531.8 million in the preceding week. [NST picture by SHARIL AMIN ABDUL RAHIM]
KUALA LUMPUR: Foreign investors have been disposing local stocks at slower pace for the past four weeks, suggesting that they will soon buy more than sell.
MIDF Research said based on preliminary data from Bursa Malaysia, the amount sold by global funds last week had been reduced by more than half to RM247.1 million net from RM531.8 million in the preceding week.
This was the smallest weekly attrition recorded so far this year.
“Global investors were net sellers on every single day except on Wednesday which saw a foreign inflow worth RM71.7 million net, the first since June 29, 2018,” it said in a fund flow report today.
MIDF Research said Bursa’s key index followed suit to end 0.91 per cent higher at 1,753 points last week, amid Jerome Powell’s reaffirmation of his upbeat assessment on the U.S economy.
“Other Asian peers namely South Korea, Taiwan and the Philippines also experienced a surge of inflows on the same day,” it added.
MIDF Research said foreign net selling occurred on other days remained well below RM100 million, a level deemed moderate, while Thursday recorded the highest foreign net selling during the week at US$95.6million net.
“The FBM KLCI marked its nine-day winning streak on the same day supported by the rise in construction stocks following the announcement that the KL-Singapore HSR project will be deferred instead of being unilaterally cancelled.
“However, the reduction of outflows to RM64.6 million net on Friday coincided with the 0.26 per cent decline in the FBM KLCI amid profit taking activity in telecommunication stocks as they led decliners,” it said.
MIDF Research said Malaysia’s year-to-date (YTD) foreign net outflow had reached RM8.31 billion or US$2.07 billion, offsetting about 80 per cent of last year’s RM10.33 billion inflow.
“This figure is still the second lowest outflow among the four Asean markets we track, standing below the Philippines which has a YTD outflow of US$1.31 billion net.”
Participation among foreign investors, retailers and local institutional funds remained upbeat as each of their average daily traded values (ADTV) stood above RM1 billion, RM800 million and RM2 billion respectively.
Among top 10 inflows in local stocks were Genting Bhd, YTL Power International Bhd and CIMB Group Holdings Bhd, which registered net inflow of RM8.98 million, RM6.80 million and RM6.72 million respectively.
The top 10 outflow included Malaysia Airports Holdings Bhd, Public Bank Bhd and Tenaga Nasional Bhd, which recorded net outflow of RM26.27 million, RM8.00 million and RM7.53 million respectively.
By New Straits Times(Published: 23/07/2018) https://www.nst.com.my/business/2018/07/393596/international-investors-money-outflow-slowed-bursa-malaysia
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