KUALA LUMPUR (July 3): Foreign investors on Bursa Malaysia disposed RM298.0 million of Malaysian equity last week, the largest weekly outflow this year, according to MIDF Amanah Investment Bank Bhd Research.
 
In its weekly fund flow report today, the MIDF Research Strategy team said the heaviest foreign selling was recorded on Friday, with net disposals surging to RM228.4 million, as fund managers rationalised their position as the second quarter came to a close.
 
“We note that in June, foreign investors acquired RM344.4 million net of local equity, the lowest in a month this year.
 
“Nonetheless, foreigners had built a solid position on Bursa in 1H17, buying six months in a row,” it said.
 
MIDF Research said cumulative foreign buying on Bursa surged substantially to RM10.2 billion or an estimated USD2.3 billion in the first half, the highest among South East Asian (SEA) peers.
 
It said the next biggest recipient in SEA was the Jakarta bourse, recording a surplus of USD1.3 billion.
 
Foreign participation was healthy last week, despite the short trading week, the research house added.
 
It said foreign average daily trade value (ADTV) increased by 26% for the week, from RM989.6 million to RM1.24 billion.
 
“Indeed, foreign trading was active on Wednesday and Friday, as the trading value exceeded RM1 billion for both days.
 
“In contrast, the retail market resumed its sluggish pace. Retail ADTV was slightly unchanged at RM627.5 million, being under the RM1 billion mark for the fifth week running,” MIDF Research added.