KUALA LUMPUR (Oct 8): International funds sold RM69 million of local equities on Bursa Malaysia last week, after buying RM212.3 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.
In his weekly fund flow report today, MIDF Research's Adam M Rahim said the RM69 million was the second smallest weekly foreign net outflow recorded so far in 2018.
Nevertheless, he said Malaysia saw the lowest level of foreign attrition last week among the four ASEAN markets he monitors.
"Bursa saw a decent foreign net inflow of RM19.7 million on Monday but was later cancelled off by a small net outflow worth RM36.2 million on Tuesday despite the revised trade pact between the US and Canada.
"Foreign funds were on a roll on Wednesday and Thursday as they mopped up local stocks worth more than RM70 million on both days," he said.
Adam said that interestingly, foreign investors in other regional peers namely the Philippines, Thailand, and Indonesia were reducing their exposure during the same period.
"However, offshore funds were back in selling mode on Friday but at a heightened level of RM209.3 million net, the highest in 16 trading days.
"The local bourse followed suit to decline by 0.72% to 1,777 points on the same day, the lowest close since late July 2018," he said.
Adam said risk aversion was spurred by the rise in US 10-year treasury yields overnight which breached above 3.2%, a level not seen in seven years.
He said so far in 2018, the total foreign net outflow from Malaysia as of last Friday stood at RM8.6 billion, offsetting approximately 6% of last year's RM10.3 billion foreign net inflow.
"Meanwhile, Malaysia still retains its position as the nation with the second lowest year-to-date foreign net outflow amongst the four ASEAN markets we track," he said.
Adam said participation of foreign investors dipped as its weekly average daily traded value ended 8.2% below the RM1 billion mark for the first time in 13 weeks.
He said that meanwhile, participation in the retail market and local institutional funds remained healthy above RM800 million and RM2 billion respectively.