Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 10): Foreign investors sold a net total of RM29.7 million of Malaysian equity last week, a reversal from RM460 million net purchase in earlier week, according to MIDF Research.

In his Fund Flow report Monday, MIDF Research head of equity Syed Mohammed Kifni Syed Kamaruddin said global funds’ aversion towards Malaysian equity returned after a mere one week respite.

He said that in the fourth quarter of this year, the local bourse had thus far witnessed only two weeks of foreign fund inflows.

Syed Muhammed said foreign investors were net sellers on each day except for Monday and Wednesday last week.

“We saw the buying intensity from the previous week spilled over into Monday trading as RM122 million net foreign funds entered our bourse.

“However RM53 million net selling pressure emerged on Tuesday and pent-up buying worth RM45 million resurfaced the day after. Thenceforth, selling margin re-emerged at negative 50 million on Thursday before it jumped further to minus RM94 million on Friday,” he said.

He said that on cumulative basis, foreign investors remained net sellers of Malaysian stocks in 2014.

He said the net outflow as of last Friday had increased to RM3.72 billion. In 2013, Malaysia reported a net inflow of RM3.03 billion.

Syed Muhammed said foreign participation rate eased last week.

He said the daily average gross purchase and sale declined to RM900 million from RM967 million recorded in the prior week.

Nonetheless, local participation rate is rising, he said.

“In the retail market, the average daily gross purchase and sale increased to RM900 million. In tandem with the higher participation rate, local retailers were the net buyers for last week.

“Meanwhile, local institutions’ participation rate increased to RM2.4 billion last week. However, they continued to be net sellers for the second week in a row,” he said.

Commenting on the region, Syed Muhammed said the flow into Asian equity continued on last week as global funds made a general return for the third week in a row.

“Nonetheless, the rate of inflow is showing signs of ebbing.

“Uncertainty over the pending verdict as well as the reaction to the outcome of the high-profile trial of an opposition leader may have perturbed some foreign investors and resulted in a slight net foreign liquidity outflow from Malaysia last week,” he said.

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