KUALA LUMPUR (July 4): The two-month long foreign selling episode approached its end last week, and the net amount sold by foreign investors tapered down to a negligible RM1.4 million last week from RM134.4 million the week prior, according to MIDF Research.

In his weekly fund flow today, MIDF Research head Zulkifli Hamzah said the estimates are based on transactions in the open market which excluded off market deals.

“We note that foreigners have actually started buying on Bursa during the second half of the week ? they were net buyers on Wednesday through Friday.
 
“While the overall weekly net flow appeared negligible, the daily flows were relatively dynamic,” he said.
 
Zulkifli said foreigners started the week with caution, possibly due to the overhang Brexit fear. 

“They offloaded RM312.5 million on the first two days. Nevertheless, the sentiment shifted as the week progressed.
 
“They turned net buyers on Wednesday, though only with a small buying of RM14.1 million,” he said.  
 
Nonetheless, he said momentum built up on the following day as foreigners loaded up a substantial amount of RM283.5 million, their highest daily buying in three months.
 
“This single day buying has virtually erased the early week’s attrition.
 
“Foreign buying was extended into Friday at RM13.5 million.
 
“In the first half, foreigners effectively had a neutral position on Bursa,” he said.
 
Zulkifli said amid all the market upheavals, foreign position on Bursa dipped by a marginal RM48.6 million.
 
He said foreigners had offloaded RM19.5 billion and RM6.9 billion in 2015 and 2014 respectively.
 
“Foreign participation rate remained moderate last week.
 
“It edged down to RM811.7 million from prior week’s RM853.2 million.
 
“Their participation rate remained moderate at less than RM900 million for four consecutive weeks.
 
“Local institution bought up RM49.5 million on Bursa last week,” he said.
 
Zulkifli said that meanwhile, its participation rate declined to RM1.76 billion from prior week’s RM1.95 billion.
 
He said retail buyers continued to be net sellers last week, with a faster pace at RM48.1 million.
 
He said they sold RM20.5 million the week prior.
 
Meanwhile, he said their participation rate slowed down to RM463.4 milliion.
 
He said it was the second lowest level thus far this year.