Friday 29 Mar 2024
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KUALA LUMPUR (June 13): Foreign selling on Bursa continued for the seventh consecutive week, but the pace of the selldown has decelerated significantly, according to MIDF Research.

In his weekly fund flow report today, MIDF Research head Zulkifli Hamzah said the net amount offloaded by foreign investors narrowed substantially to only RM169.9 million last week from RM1.19 billion the week prior.

He said it was also the lowest outflow in seven weeks.

He explained that the estimates are based on transactions in the open market which excluded off market deals.

Zulkiflis said foreigners were net sellers on three out of five trading days last week.

“Selling momentum from the week before spilled over when trading commenced on Monday, with foreigners offloading –RM28.5 million on the day.

“However, the selling ended abruptly on Tuesday with a buying of RM93.8 million. It was the highest daily buying since April 21 this year.

“Foreign purchase was extended into Wednesday at RM31 million,” he said.

Nevertheless, Zulkifli said buying momentum was halted on Thursday with a relatively heavy attrition of RM163.6 million.

He said foreigners then continued to sell on Friday at RM102.6 million.

“Last week’s foreign withdrawal further reduced the cumulative net foreign inflow thus far this year into share listed on Bursa to an estimated RM1.11 billion, down marginally from prior week RM1.22 billion.

“The figure has been on a declining trend for the seventh week. In retrospect, foreigners had offloaded RM19.5 billion and RM6.9 billion in 2015 and 2014 respectively,” he said.

Zulkifli said foreign participation rate plummeted to RM809.9 million last week.

He said it was the lowest figure thus far this year.

“Trading activities returned to its normal track after investors’ prior week portfolio rebalancing.

“Taking out prior week’s outlier data point, foreign participation rate has in fact been declining for three straight weeks.

“Foreign trading was active on Tuesday at RM1,141 million,” he said.

Zulkifli said that meanwhile, tepid trading was seen on Monday and Friday at RM692 million and RM529 million respectively.

He said local institution loaded up RM220 million on Bursa last week.

“Meanwhile, its participation rate edged down to RM1.93 billion from prior week’s RM2.2 billion.

“Retail buyers offloaded RM50.1 million of equities. It was their biggest selling since April 8 this year. Meanwhile, their participation rate rose to RM568.4 million,” he said.

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