Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 9): Foreign selling of Malaysia equity on Bursa Malaysia narrowed to RM82.9 million last week, from RM967.3 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.

In its weekly fund flow report today, the MIDF Research Strategy team said foreign investors were net sellers on every single day of the week except on Tuesday as foreigners bought RM82.2 million net, which coincided with the FBM KLCI's 0.28% advance to 1,761 points after four days of staying below the 1,760 level.

"Interestingly, local institutions cashed in gains the same day, selling off RM60 million net, ending their 11-day buying binge.

"Meanwhile, foreign selling was the highest on Monday with a net outflow of RM79.2 million, which was half of the amount sold in the preceding week's Friday," it said.

The research house said the tapered outflows on Monday snapped FBM KLCI's 10 straight days of losses.

"Overall, the slowdown in foreign sales of Malaysian stocks last week could be attributable to the spillover effect from record gains in Wall Street as President Trump's tax plan makes progress.

"The cumulative net inflow thus far this year into shares listed on Bursa was slightly pulled down to RM9.53 billion from RM9.61 billion in the week before," it said.

MIDF Research said although the number of weekly attritions has reached 11, the year-to-date inflow still offsets approximately 30% of the net outflows recorded in the past three years.

It said foreign participation took a beating last week as other key Asian markets were shut for the week.

"The foreign average daily trade value (ADTV) took a huge 40% plunge from RM1.26 billion down to RM757 million, the lowest in six weeks.

"The retail market also tracked the decline in foreign participation as the retail ADTV dropped by 6.2% from RM921 million to RM864 million," it said.

 

      Print
      Text Size
      Share