KUALA LUMPUR (July 10): Foreign investors sold RM205.5 million of local equity last week, according to MIDF Amanah Investment Bank Bhd Research.

In its weekly fund flow report today, the MIDF Research Strategy team said the amount sold for the week ended July 7 was the second highest out of the only five weeks that net sale had been recorded this year.

It said the heaviest foreign selling during the week was recorded on Tuesday, with net disposals reaching RM139.2 million, as geopolitical tensions heightened on the back of the ICBM test by North Korea.
 
“We note that the markets in Indonesia, Thailand and the Philippines were also the casualties of foreign attrition on Tuesday,” MIDF Research said.
 
Last week’s foreign withdrawal reduced the cumulative year-to-date net inflow to below the RM10 billion mark, at RM9.96 billion, the research house added.
 
Notwithstanding this, MIDF Research said the year-to-date inflow into Malaysia still offsets approximately 30% of total outflows in 2014-2016.
 
The research house said foreign participation eased last week as its average daily trade value (ADTV) declined by 36% for the week, from RM1.24 billion to RM792.2 million.
 
“Indeed, foreign daily trade value during the week only ranged from RM710 million to RM820 million, compared to above RM1 billion before,” MIDF Research said.
 
The research house said in contrast, the retail market continued to slow down with its ADTV slightly unchanged at RM627.5 million, below RM800 million level for the third consecutive week.