KUALA LUMPUR (April 29): Foreign selling of local equity on Bursa Malaysia narrowed to a paltry RM72 million last week from RM433.4 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 this is the lowest weekly foreign net outflow in 16 weeks.
"Bursa started the week with a foreign net outflow of RM95.2 million on Monday while the local bourse was little changed at 1,622 points.
"The foreign net outflow occurred despite gains seen in the KL Construction Index following the reinstatement of the Bandar Malaysia project announced on Friday in the preceding week," he said.
Adam said on Tuesday, international investors turned net buyers on for the first time in nine trading days after purchasing RM38.6 million net before advancing to RM105.9 million net on Wednesday.
He said the surge of foreign funds into Bursa on Wednesday was partly attributable to the overnight record highs posted on Wall Street.
He said as such the FBM KLCI followed suit to close 0.7% higher at 1,638 points.
"The two-day buying streak came to an end on Thursday as foreign investors sold RM113.7 million net as US equities slip from their record high.
"Friday still saw foreign funds selling off equities on Bursa but at a minimal level of RM7.6 million net," he said.
Adam said sentiment on Friday was partially buoyed by China's agreement to purchase more palm oil from Malaysia.
He said with two more trading days left, April is set to be a month of foreign net outflow.
"International investors have so far disposed [of] RM1.21 billion this month bringing the year-to-date foreign net outflow to RM2.56 billion.
"Among the four ASEAN markets we monitor, Malaysia retains its position as the nation with the largest foreign net outflow," he said.
Meanwhile, Adam said among the seven Asian markets MIDF Research tracks, India is the nation with the largest foreign net inflow worth more than US$9.5 billion or RM35 billion as the general election is still ongoing until May 2019.