Foreign selling intensified to RM843.2m last week, says MIDF Research

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KUALA LUMPUR (May 18): Foreign selling of Malaysian equity intensified last week and rose to RM843.2 million from RM774.1 million disposed in the week before, said MIDF Research.

In his weekly fund flow report today, MIDF Research’s Adam M Rahim said in comparison to its other six Asian peers that MIDF Research monitors, Malaysia remains as the nation with the third smallest foreign net outflow on a year-to-date basis after Indonesia and the Philippines.

He said foreign investors have so far taken out RM11.9 billion net of local equities from Malaysia.

“As markets reopened from the public holiday, foreign investors on Tuesday sold RM159.9 million on growing worries about a second wave of Covid-19 infections after the city of Wuhan lifted its lockdown.

“Trading volume on Bursa skyrocketed to a record of 9.6 billion shares on Wednesday amidst interest in healthcare related counters sparked by a possible second wave of Covid-19 infections,” he said.

Adam said the local stock barometer closed 1.3% higher on the same day, supported by the RM275.0 million purchase of equities by local institutions.

“Meanwhile, foreign net selling activity inched higher on to RM239.6 million.

“The momentum of foreign net outflow accelerated on Thursday to RM334.6 million, after overnight Wall Street declines and  generally headed south as investors weighed economies wracked by the tenacious COVID-19 pandemic and cautious commentary Wednesday by US Federal Reserve Board Chairman Jerome Powell,” he said.

Adam said riday witnessed a slowdown in foreign net selling to RM109.0 million amidst the rise in China’s industrial output for the fi rst time since the Covid-19 outbreak.

He said industrial output rose 3.9% from a year earlier, reversing a drop of 1.1% in March.

“In terms of participation, all investor groups saw a weekly  increase in their average daily traded value (ADTV). Foreign investors recorded the smallest weekly gain in ADTV of 44.1% to return above the healthy RM1 billion mark,” he said.

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