Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Oct 7): Foreign selling of Malaysian equity on Bursa Malaysia swelled to RM770.8 million last week from RM150.9 million the prior week, according to MIDF Investment Bank Bhd Research.

In his weekly fund flow report today, MIDF Research's Adam M Rahim said this was the biggest weekly foreign net outflow in eight weeks.

"Bursa ended 3Q19 on a weak note as foreign investors sold RM72.3 million net of local equities on Monday.

"Jitters came from news on President Trump's talk of delisting Chinese firms from the US markets in the preceding week," he said.

Meanwhile, Adam said September saw a total foreign net outflow of RM559 million, the second lowest monthly foreign net outflow so far in 2019.

"Nevertheless, the local bourse started 4Q19 on the right foot with a slight gain of 0.4% on Tuesday, snapping two days of losses.

"However, the FBM KLCI was still the smallest gainer amongst regional peers due to the foreign net outflow of RM74.2 million," he said.

Adam said foreign net selling momentum accelerated further on Wednesday, reaching RM168 million.

He explained that sentiment on Thursday was influenced by the US factory gauge hitting the weakest point since the end of the last recession.

Adam said the US is also set to slap US$7.5 billion worth of tariffs on European imports.

"As such, offshore investors dumped RM266.5 million net on Thursday, the highest daily foreign net outflow in more than a month.

"Foreign investors then disposed [of] RM189.7 million net on Friday, extending the foreign net selling spree to the sixth day as Malaysia's imports in September reached the lowest level since 2009," he said.

Adam said the local bourse followed suit to close at 1,557.7 points on the same day, a level not seen in four years.

"On a year-to-date basis, international funds have taken out RM8.60 billion worth of local equities from Bursa, making up 74.0% of last year's foreign outflow of RM11.69 [billion]," he said.

Adam said in terms of participation, foreign investors experienced the largest weekly drop in the average daily traded value (ADTV) of 12.5% to go remain below the RM1 billion mark at RM772.3 million.

      Print
      Text Size
      Share