KUALA LUMPUR (Feb 16): Foreign funds offloaded RM2.8 billion of Malaysian equity year-to-date as of last Friday, according to  MIDF Research.
 
The research house pointed out that the cumulative foreign outflow for the entire 2014 was RM6.9 billion.
 
In his weekly fund flow report Monday, MIDF Research head Zulkifli Hamzah said foreign funds sold every single day last week, and net amount outflow last Thursday was RM357 million, the third highest in a day this year.
 
However, he said that the aversion could be partly attributable to the long break ahead, not only in Malaysia, but most markets in the East Asia.
 
Zulkifli said that last week, investors classified as “foreign” sold, on a net basis, local equity in the open market amounting to RM677.7 million net.
 
He said foreign volume was still elevated, adding that foreign participation rate (daily average gross purchase and sale) was RM1.14 billion last week, six weeks in a row that it had exceeded RM1 billion.
 
However, he added that it was the lowest in five weeks.
 
Zulkifli said local institutions supported the market last week, mopping up RM749 million.
 
He said participation rate remained strong at RM2.56 billion.
 
He said local institutions had absorbed RM3.1 billion net so far this year.
 
“In 2014, they bought RM8.2 billion net.

“Retailers remained cautious and stayed on the sideline. Retailers sold RM71.2 million last week, the fourth straight week of selling.
 
“Participation rate remained moderate at RM877.2 million. This is not a healthy condition if one is expecting a pre-New Year rally of the retail stocks,” he said.
 
Commenting on the region, Zulkifli said that for the most part last week, trading in the equity market had been weighed down by concerns over Greece.
 
However, he said markets roared to life on Friday.
 
On Wall Street, he said the Dow Jones broke the 18,000 point mark for the first time while the S&P500 closed at record high, the first time in 2015.
 
He said the main catalyst to the market was the EU’s 4Q14 GDP growth, which beat expectations.
 
He said that boosted oil price with the Brent last traded at US$61.52 per barrel.
 
“In Asia, all eyes were on China which staged a strong rebound after three straight weeks of losses. The CSI300 gained 4.75%, reversing some of the -6.3%ytd loss prior to last week.
 
“New reform measures announced boosted sentiment ahead of the Lunar New Year holiday.

“Trading in many markets in the region will be suspended for an extended period of time for the New Year. In Taiwan, there will be no trading from Monday until the following Monday. China’s market will be closed from Wednesday until the following Tuesday,” he said.

“There is an even chance of a pre-New Year rally. A better bet is for a post-festive cheers,” he said.