Foreign funds sold minimal RM15.3m local equity last week, says MIDF Research

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KUALA LUMPUR (Sept 3): Foreign investors sold a paltry RM15.3 million of local equities last week, versus an inflow of RM46.5 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research’s Adam M Rahim said the disposal last week was the lowest weekly foreign net outflow recorded so far in 2018.

He said offshore investors accumulated a decent amount of local equities to a tune of RM23.2 million net and RM34.8 million net on Monday and Tuesday respectively.

“The mood on Monday was upheld by comments from the Federal Reserve citing the ongoing plans to increase interest rates. Risk on appetite was further bolstered the next day following the preliminary agreement reached between the U.S and Mexico on replacing NAFTA.

“The local bourse tracked the gains on Wall Street to jump 0.84% to 1,826.9 points on Tuesday, a level not seen since late May this year,” he said.

Adam however said that investors fled Bursa on a large scale of RM121.6 million net on Wednesday, the highest daily outflow in six trading days as investors booked in profits and took cue from muted trading overnight on Wall Street.

He said foreign funds nevertheless snapped up RM48.3 million net in conformity with Asian peers namely South Korea, Taiwan and Indonesia, tracking the rally in technology shares in U.S markets.

Adam said the total foreign net outflow in August 2018 shrank to just RM97.4 million, compared to RM1.60 billion in July 2018.

He said this marks the fourth consecutive month of gradual decline in foreign selling since May 2018.

“The year-to-date outflow from Malaysia still stands at RM8.60 billion as of last Friday,the second lowest outflow amongst the 4 ASEAN markets we monitor.

“In spite of the holiday-shortened week, foreign investors remained active as their weekly average daily traded value (ADTV) was 7.7% higher at RM1.24 billion stood above RM1 billion  for the 7th week running,” he said.

Adam said the scene in the retail market and local institutional funds was equally positive as their ADTVs rose by 2.6% and 11.2% respectively.