KUALA LUMPUR (March 12): Foreign investors disposed RM299.1 million of Malaysian equity on Bursa Malaysia last week, compared to buying RM160.9 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 disposal last week was the largest since the global stock market rout in early February.
“Monday recorded the highest foreign selling of RM151.7 million net amid fears of the U.S’s planned import tax on steel and aluminium.
“Local metal players such as Press Metal Aluminium Holdings Bhd was bad badly hit, leading decliners with a 9.1% decline that day,” he said.
He said it was notable that other Asian peers, namely Thailand, Indonesia and Taiwan also experienced the heaviest attrition on Monday during the week.
Adam said Tuesday was the only day which had a marginal inflow of RM15.2 million net.
He said this coincided with the FBM KLCI’s 0.3% advance to close at 1,848 points as it tracked gains from global markets as fears of a global trade war waned after U.S allies put pressure on President Trump’s protectionist policies.
“Global investors were back in selling mode thereafter until Friday but at a relatively measurable pace of below RM100 million.
“We reckon that the outflows abated partly due to North Korea’s possible denuclearisation plans and its conciliatory gesture to hold talks with the U.S,” he said.
Adam said that on a year-to-date basis, foreigners have accumulated RM1.91 billion worth of local equities, higher than the RM1.69 billion acquired during the same period last year.
He said foreigners were still active as the foreign average daily trade value (ADTV) stood above the RM1 billion mark for the 10th straight week at RM1.12 billion.
Adam said although the retail ADTV declined by 4% last week, the retail market is deemed to be still healthy as the retail ADTV remains above the RM1 billion mark for the third week running.