KUALA LUMPUR (Sept 30): Foreign selling of Malaysian equity on Bursa Malaysia narrowed to RM150.9 million last week from RM249.3 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 so far in 2019, there has been 26 weeks of foreign net selling.

"A sense of calm descended on Monday as foreign investors shrugged off China's cancellation of a planned visit to farms in the US which was unrelated to the trade matters between the two nations.

"As such, international funds accumulated RM11.5 million net of local equities on the same day," he said.

Adam said foreign funds turned net sellers to a tune of RM62.2 million on Tuesday despite the new waivers granted to domestic state and private companies to buy US soybeans without being subjected to retaliatory tariffs

He said the pace of foreign net selling activity was little changed at RM62.9 million on Wednesday as investors weighed the rising possibility of impeachment proceedings being brought against US President Donald Trump.

"Positivity returned to the market on Thursday as foreign investors snapped up RM100.1 million net of local equities.

"This followed the draft rules in China of requiring banks to distribute excess provisions for bad loans to investors to curb accounting malpractice," he said.

Adam said foreign net selling peaked during the week on Friday at RM137.3 million as Malaysia was retained on the watch list for exclusion from the FTSE Russell World Government Bond Index.

He said with one day trading left, September has seen a foreign net outflow as international investors have thus far sold RM486.7 million net, one of the lowest amongst the four ASEAN markets MIDF Research monitors.

"On a year-to-date basis, international funds have taken out RM7.83 billion worth of local equities from Bursa.

"In terms of participation, foreign investors experienced the largest weekly drop in the average daily traded value (ADTV) of 50.8% to go below the RM1.0 billion mark at RM882.4 million," he said.