Foreign selling narrowed to RM52.3m last week, says MIDF Research

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KUALA LUMPUR (Nov 26): Foreign selling of Malaysian equities narrowed to RM52.3 million last week from RM417.3 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 Monday saw a decent amount of foreign net inflow worth RM34 million, coinciding with the FBM KLCI's largest daily gain during the week of 0.25%.

He said support on Monday came from stalwarts in the banking sector such as CIMB Group Holdings Bhd, Malayan Banking Bhd and Public Bank Bhd in addition to plantation stocks.

"Markets were closed on Tuesday in conjunction with the Maulidur Rasul holiday.

"As markets reopened on Wednesday, international funds withdrew RM151.7 million net of local equities, the biggest foreign attrition during the week," he said.

Adam said this followed the sharp 6.4% drop in Brent crude oil price overnight as concerns of a global oversupply continue looming.

He said the massive outflow was in conformity with other regional peers, namely South Korea and Thailand.

"Nevertheless, foreign investors shifted back into buying mode on Thursday, accumulating RM51.5 million net while the local bourse was little changed, only gaining 0.25 points.

"Interestingly, Malaysia fared better than the regional peers mentioned above as they still experienced outflows," he said.

Adam said foreign inflows were seen again on Friday but at a measurable level of RM14 million net as uncertainty in global trade continues to haunt the Asian region.

He said November is poised to be another month of outflows with the month-to-date outflow as of last Friday amounting to RM474.1 million net.

He said while foreign investors have sold RM10.42 billion of local equities on a year-to-date basis, which offsets last year's inflow of RM10.33 billion, Malaysia still has the second lowest foreign net outflow among the four Asean markets that MIDF Research monitors.