KUALA LUMPUR (July 5): Foreign investors continued to remain as net sellers last week. However, the total net outflow narrowed to RM331.04 million from RM444.92 million in the previous week.
From June 29 to July 2, average foreign participation declined to 15.5% versus 16.3% previously.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said during the period, net selling by local retail investors stood at RM39.7 million with an average participation of 36.49% versus a net buy of RM266.93 million in the previous week.
Meanwhile, net buy by local institutions rose to RM370.75 million with an average participation of 48.02% from RM177.98 million in the previous week.
Mohd Afzanizam said foreign net selling took a slight breather at the beginning of the week as offshore funds only offloaded RM12.7 million net of local equities last Monday.
"The slowdown in selling activity coincided with the FBM KLCI's 0.5% rebound on the same day, amidst renewed interest in glove and healthcare counters," he told Bernama.
However, foreign net selling rose to RM79.2 million last Tuesday, bringing the total foreign net outflow in June 2020 to RM2.98 billion.
Mohd Afzanizam said July started on a sluggish note as international funds upped the ante in selling activity last Wednesday, disposing of RM142.1 million net of local equities, the highest for the week.
Nevertheless, he said local institutions were actively buying local equities to the tune of RM180.9 million on the same day, following the jump in Malaysia's manufacturing Purchasing Managers' Index, which rose to 51 for June — the highest level since September 2018 — from 45.6 in May.
Last Thursday, foreign net selling inched lower to RM97 million, extending the selling streak to 12 consecutive days.
"The upbeat sentiment on Thursday — which capped foreign net outflows — was spurred by hopes stemming from the positive trial result of Pfizer and BioNTech's [Covie-19] vaccine candidate," Mohd Afzanizam said.
He said compared with ASEAN peers — namely Thailand, Indonesia, and the Philippines — Malaysia has the second-highest foreign net outflow at RM16.52 billion after Thailand on a year-to-date basis.