KUALA LUMPUR (Feb 15): After two weeks of buying, foreign investors turned net sellers on Bursa last week and sold RM197.1 million last week, according to MIDF Research .

In his weekly fund flow report today, MIDF Research head Zulkifli Hamzah however said the amount was not sizeable and the outflow reflects the contagion effect arising from the upheavals in the global equity markets.

He said it was also a blessing in disguise that the trading week was shortened by two days, as it limited the damage imparted on the local bourse.

Zulkifli said the total amount of equities sold by foreigners, net of purchases, amounted to RM197.1 million last week.

“This is estimated based on transactions in the open market and excluded off market deals.

“It was a reversal from the RM1.49 billion purchased in the preceding fortnight,”he said.

Zulkifli said foreign investors were net sellers on Wednesday and Thursday and the amount was relatively significant, exceeding RM100 million each day.

He said the source of the attrition was most likely from the RM1.49 billion aforementioned.

“However, foreigners turned net buyers on Friday, somewhat against the tide as overseas investors were selling in Korea, Thailand and the Philippines on the day.
 
“The amount was small, though, at RM50.6 million,” he said.
 
Zulkifli said last week’s foreign purchases meant that the cumulative year-to-date outflow for 2016 is now below RM1 billion at RM913.4 million.
He said for the entire 2015, the net outflow was RM19.5 billion.
 
Zulkifli said foreign participation rate (average daily traded value of shares) fell below RM1 billion after having stayed above the level for 2 consecutive weeks.
 
He said the average amount traded declined to RM884 million, which is still healthy in view of the break.
 
Meanwhile, Zulkifli said local institutions and retailers took the opportunity of price weakness to mop up RM169.6 million and RM27.5 million respectively.
 
He said participation rate of local players was noticeably subdued.
 
He said local institutional average trade plunged to RM1.39 billion while that of retailers dropped sharply to RM420 million, both the lowest this year.