Foreign selling widened to RM780.5 mil last week, says MIDF Research

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KUALA LUMPUR (Dec 5): Foreign funds sold a total of RM780.5 million of Malaysian equity last week compared to only RM493.3 million in the prior week, according to MIDF Research.

In its weekly fund flow report today, MIDF Research's strategy team said the heavy tide out of Malaysia was less evident in most other Asian markets.

It said foreign investors continued to be net sellers throughout the week.

"There was a spike of RM109.2 million on Wednesday. Besides that, the attrition level ranged between RM33 million [and] RM8 million with the lowest recorded on Thursday of RM8.11 million.

"On a cumulative year to date, the amount of net selling from foreigners has further deepen to RM2.5 billion from a peak of RM6.47 billion in April," the research house said.

However, MIDF noted that compared to 2015, the outflow amount is still considered low as only RM8.6 billion has been redeemed since April.

"It was RM19.5 billion net outflow in 2015.

"Retail investors continued to be positive at RM476.7 million maintaining its levels in October. However, the buying on dips conviction fell last week to RM37.9 million," it said.

Commenting on the top outflows last week, MIDF Research said Public Bank Bhd saw the largest net money outflow of RM46.37 million last week.

"Nonetheless, its stock price outperformed during the review week with a 0.72% gain vis-à-vis a smaller 0.1% rise in the FBM KLCI.

"It is noteworthy that net money outflow amidst advancing share price indicates a sell on strength (SOS) stance among some investors," it said.

The research house said IHH Healthcare Bhd recorded the second largest net money outflow (RM16.32 million) during the week under review.

"Accordingly, its share price underperformed the market benchmark with a 0.16% weekly loss," it added.

Meanwhile, MIDF Research said Petronas Chemicals Group Bhd registered the third largest net money outflow at RM13.27 million in the review week.

"However, its share price outperformed with a 1.33% gain which may attract a SOS stance among some investors," it noted.