Friday 29 Mar 2024
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KUALA LUMPUR (June 6): Foreign selling on Bursa continued for the sixth consecutive week, the longest selling streak since last September, according to MIDF Research.

In his weekly fund flow today, MIDF Research head Zulkifli Hamzah said the net amount offloaded by foreign investors surged to RM1.196 billion from RM709 million the week prior, marking the highest weekly sell-off since October 2015.

He said this was estimated based on transactions in the open market which excluded off-market deals.

“Foreigners were net sellers on every day last week. As of Friday, foreign investors had been selling in 26 out of 28 straight days.

“We note that prior Friday’s foreign buying appeared to be transient. The momentum halted on Monday with attrition of RM177.4 million.

“The selling pressure peaked on Tuesday when foreigners dumped RM597 million. It was the second highest daily selling since August 2013, after the RM657.6 million attrition three weeks ago,” he said.

Zulkifli said selling pressure later on subsided to RM189.5 million on Wednesday, with the pace further slowed down to RM128.1 million on the following day.

He said foreigners ended the week with a selling of RM104 million on Friday.

Zulkifli said last week’s foreign withdrawal further reduced the cumulative net foreign inflow thus far this year into share listed on Bursa to an estimated RM1.28 billion, down from prior week RM2.48 billion.

He said the figure has been on a declining trend for the sixth week.

He said that in retrospect, foreigners had offloaded RM19.5 billion and RM6.9 billion in 2015 and 2014 respectively.

Foreign participation rate surged high to RM2.59 billion last week, according to Zulkifli.

He said the increase was mostly driven by the staggering RM9.04 billion daily trading on Tuesday (May 31).

Zulkifli said that it was a common trading pattern historically due to the implementation of MSCI new weighting the day after.

“Apart from this, trading was also active on Wednesday and Thursday, standing at RM1.05 million and RM1.07 million respectively,” he said.

He said local institution continued to support the market, mopping up a staggering RM1.197 billion.

Zulkifli said this was its highest weekly buying since Aug 28, 2015.

He said meanwhile, its participation rate increased by RM381.9 million from prior week to RM2.2 billion.

He said retail buyers were non-players last week by offloading a negligible amount of RM600,000.

He said their participation rate edged down to RM535.2 million.

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