Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 26): Foreign money continued to exit the Malaysian equity market but fell to the smallest weekly quantum this year at RM41 million, according to MIDF Research.

In his weekly fund flow report, MIDF Research head of equity Syed Muhammed Kifni said foreign investors were net sellers in three out of the five trading days last week.

He said selling peaked on Tuesday, when a net amount of RM182.6 million was offloaded.

Syed Muhammed said foreign selling subsided thereafter as they turned net buyers on Wednesday and the net buying by foreign investors jumped to nearly RM260 million on Friday.

He added that it was noteworthy that the amount of foreign net buying on last Friday was the highest single day net foreign purchase since early June last year.

Syed Muhammed said foreign participation rate (daily average gross purchase and sale) increased further to RM1.19 billion, the third week in a row that the amount exceeded RM1 billion.

He said the average daily foreign participation rate in 2014 was RM980 million.

Syed Muhammed said local institutions continued to help support the market last week, mopping up RM331 million net.

He said the participation rate was also elevated at RM2.85 billion.

“Local retailers were cautious last week as they recorded selling at RM183 million net.

“Most retail investors seemed still on the side line although participation rate climbed slightly to RM916 million. That was only marginally higher than 2014’s average of RM873 million,” it said.

Commenting on the region, Syed Muhammed said the flow out of Asian equity reversed abruptly last week as global funds made a general return into this region.

He said the rate of net inflow for the week was quite steep at more than three billion dollars thanks largely to a strong reversal into Taiwan.

“The main impetus to the strong foreign funds re-entry into Asia may be attributable to the decision by European Central Bank (ECB) to initiate its own version of Quantitative Easing.

“While the ECB’s so-called “monetary bazooka” was directed at European bonds, nonetheless some of the money will arguably indirectly benefit the other asset classes and regions, Asia included,” he said.

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