KUALA LUMPUR (June 4): Foreign selling of Malaysian equities rose to RM1.27 billion last week, from RM892.4 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 with foreign selling on every single day of the week, the selling streak has extended to 19 days, the longest since the 21-day binge in May to June 2015.
“Monday’s attrition stood at RM216.5 million, a level which is normal at this juncture.
“However, foreign funds pulled out RM609.2 million net on Wednesday, the highest in a day since May 15 after Tuesday’s break following the cancellation of the MRT3 project,” he said.
Adam said the heavy selloff was also in conformity with other Asian peers namely, Korea, the Philippines and Taiwan amid the political upheaval in Italy and Spain.
He said the FBM KLCI settled at 1,719 points on the same day after plunging by 3.18%, the biggest daily drop since 2008.
“The attrition on Thursday later shrank to RM217.9 million net following efforts to form a coalition government in Italy, coinciding with the FBM KLCI’s 1.24% gain.
“Attrition levels were little changed on Friday at RM225.2 million net as investors waited for the next round of trade talks between the U.S and China over the weekend,” he said.
Adam said for the month of May, foreigners withdrew RM5.60 billion net, the highest monthly outflow in 2018 thus far.
Meanwhile, he added the year-to-date outflow from Malaysia is RM2.12 billion or US$530.7 million net, which is still the lowest among the four-ASEAN markets that he tracks.
“Foreign participation spiked as the foreign average daily trade value (ADTV) surged by 174% to an all-time high of RM4.25 billion.
“This was mainly attributable to the MSCI rebalancing on Thursday which boosted the total trading value on Bursa to a record high of RM9.0 billion,” he said.