KUALA LUMPUR (Dec 24): Foreign selling of Malaysian equity rose to RM464.1 million last week, from RM314.3 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.
In his weekly fund flow report today, MIDF Research’s Danial Razak said this was the highest amount since October.
He said foreign investors sold Malaysian equity throughout the week.
Danial said the quantum sold edged up on the days following Monday, due to oil price slump and US rate hike guidance.
“Foreign withdrawals peaked on Thursday at RM143.7 million, about one third higher from the previous trading day.
“The concerns over oil situation were seen rising as the crude oil price fell about 5.1% on Thursday,” he said.
Danial said on Friday, the Brent settled at US$53.80 per barrel, the lowest levels for more than a year on worries of oversupply.
“The heavy sell-off on Thursday coincided with the 0.31% dip in the FBM KLCI.
“It reversed earlier losses to close higher at 1,670 points on Friday,” he said.
Danial said the rebound was led by window-dressing and FBM KLCI index rebalancing activities with heavyweights namely Tenaga Nasional Bhd, Petronas Dagangan Bhd and Sime Darby Plantation Bhd emerging as top gainers, and Telekom Malaysia Bhd and KLCCP Stapled REITS being replaced by Top Glove Corp Bhd and AMMB Holdings Bhd in the FBM KLCI index.
He said that this week, the index is expected to continue gaining support on the likelihood of further window-dressing activities ahead of the year-end.
“For the month of December, cumulative foreign net outflow amounted to RM858.7 million, a third consecutive month of attrition.
“With one more week before 2018 ends, the cumulative net outflow thus far this year into shares listed on Bursa Malaysia has expanded to RM11.5 billion,” he said.
Danial said Malaysia remained as the nation with the second lowest year-to-date outflow amongst the seven Asian markets the research house monitors.
“Foreign participation rate gained momentum last week as the foreign average daily trade value surged strongly by 16.1% to reach above the RM1 billion mark to settle at RM1.2 billion,” he said.
Danial said gross trade of foreigners were above RM1 billion on four out of five trading days.
“Retail market followed suit, advancing 17.6% higher to settle below the RM1 billion mark at RM706.1 million,” he said.