Foreign funds sold RM1.91b local equity last week, says MIDF Research

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KUALA LUMPUR (March 16): Investors took out RM1.91 billion net of local equities last week from Bursa Malaysia, compared to an outflow of RM1.19 billion the prior week, according to MIDF Amanah Investment Bank Bhd Research.

In his weekly fund flow today, MIDF Research’s Adam M Rahim said nevertheless, in comparison to its other six Asian peers, Malaysia has the second least foreign net outflow on a year-to-date basis.

“Last week’s foreign net selling brings the year-to-date foreign net outflow from Malaysia to RM5.21 billion.

“The week started with Bursa seeing a RM459.9 million of foreign net selling on Monday. Monday’s sell-off was triggered by the slump in oil price due to Saudi Arabia, Russia and other oil producers failing to agree on cutting output,” he said.

Adam said the pace at which foreign investors were selling local equities decelerated to RM257 million net on Tuesday.

“Bargain-hunting activity offered some relief to the local bourse which eked out a 0.4% gain on the same day but not enough to lift it beyond the 1,450 territory.

“Foreign net selling gained momentum on Wednesday to reach RM320.3 million despite gains on Wall Street on hopes that the Trump administration will act to cushion the economic pain of the virus outbreak,” he said.

He said the foreign net outflow continued to increase to RM375.4 million after the World Health Organization declared the coronavirus a “global pandemic” on Thursday.

“Friday the 13th brought wild swings for Bursa as the local stock barometer faced its worst day since 2008, declining by 5.3% to settle at 1,344.8 points.

“As such, international funds dumped equities listed on Bursa at a tune of RM482.7 million net,” he said.

He said in terms of participation, the average daily traded value (ADTV) of foreign investors recorded the smallest gain of 13.1% for the week and remained at a healthy level of RM1.72 billion.