Foreign selling of M'sian equity narrowed to RM903.1m last week, says MIDF Research

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KUALA LUMPUR (June 11): Foreign selling of Malaysian equity narrowed to RM903.1 million last week from RM1.27 billion the prior week, said MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research's Adam M Rahim said as of last Friday, the selling streak has extended to 24 days, the longest since the 29-day binge in early January to mid-February 2014.

"A total of RM104.2 million net of shares were sold by foreigners on Monday which was below the average amount of RM300 million net sold in the week before," he said.

Adam said foreign attrition on Tuesday narrowed down further to RM87.6 million net following the technology rally on Wall Street overnight.

He said Wednesday then saw the FBM KLCI surging by 1.25% to 1,777 points, spurred by the Nasdaq index booking a third record high during the week.

However, he said foreign selling inched higher to RM134.2 million net on the same day amidst the announcement of populist policies by Italy's new government in the wake of the ECB's plan to end its quantitative easing program.

"The level of attrition thereafter swelled to be near the RM300 million net level on Thursday and Friday as investors geared up for the G7 meeting where a risk of trade war was renewed with France and Canada threatening retaliatory duties in response to US levies.

"Last week's abating outflows brought the year-to-date outflow from Malaysia to US$757.6 million net or RM3.02 billion net," he said.

Adam said this is still the lowest among its ASEAN peers that the research house monitors, namely Thailand, the Philippines and Indonesia.

He said foreign participation remained healthy as the foreign average daily trade value remained above the RM1 billion mark at RM1.64 billion despite retreating from its all-time high achieved in the week before.

He said the retail market and local funds saw buying activity extending to its fourth and sixth week respectively.