KUALA LUMPUR (Sept 25): Foreign investors offloaded RM477.7 million of Malaysian equity last week, wiping off the prior week’s inflow of RM345.1 million, according to MIDF Amanah Investment Bank Bhd Research.

In its weekly fund flow report today, the MIDF Research Strategy team said it was the first time foreign investors sold more than RM400 million for this year, making it the largest withdrawal so far.

It said the last time foreign selling reached such levels was back in end of December 2016.

“International investors were net sellers on three out of four trading days last week.

“Wednesday recorded the highest outflow in a day since June 30 which amounted to RM221 million net.

“On the same day, the FBM KLCI slid 0.17% to close at 1,773 points, mainly dragged by CIMB Group Holdings Bhd which had its Japanese shareholder, Mitsubishi UFJ Financial Group selling its entire stake through an overnight block trade,” it said.

MIDF Reseach said the weekly outflow was in conformity with those seen by South East Asian peers notably, Thailand and Indonesia.

The research house said due to last week’s massive outflow, the cumulative net inflow thus far this year into shares listed on Bursa went below RM11 billion to RM10.6 billion.

Nonetheless, it said outflows have only been recorded in 9 out of 38 weeks this which is a safe level.

MIDF Research said foreign participation rate dipped last week amid the surge in outflows.

It said the foreign average daily trade value (ADTV) declined by a staggering 24% to retreat below the RM1 billion mark to settle at RM861 million.

“In contrast, retail participation remained healthy for the week.

“The retail ADTV increased by 7% from RM940 million to breach the RM1 billion mark for the first time in 17 weeks,” it said.