Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 30): Foreign funds sold RM92.1 million of Malaysian equity last week, the highest in October, according to MIDF Amanah Investment Bank Bhd Research.

In its weekly fund flow report today, the MIDF Research Strategy Team said the amount sold was also higher than the RM71.4 million net recorded in the week before, marking the third week of increased foreign selling.

"Foreign investors reduced their holdings in Malaysian equity throughout the whole week except on Friday.

"Foreign selling peaked on Tuesday at US$120 million net, the highest in 17 days, coinciding with FBM KLCI's 0.31% drop to 1,736 points, the lowest since April 17 after taking cue from technology and industrial stocks which dragged Wall Street the day before," it said.

The research house said that on a positive note, the 11-day selling spree on Bursa came to a halt on Friday as the tabling of the 2018 Budget along with Tenaga Nasional Bhd's huge dividend payout provided impetus for foreign buying worth RM90.8 million net.

However, it said the triggered foreign buying was not enough to offset the persistent outflow from Monday to Thursday which totalled up to RM182.9 million net.

"It is also notable that the tide out of Malaysia was equally prevalent in other South East Asian markets, namely Thailand and Indonesia," it said.

MIDF Research said with two more trading days left, October is set to be the third month of foreign selling this year.

It said the cumulative month-to-date net foreign outflow into shares listed on Bursa currently stands at RM300.6 million.

MIDF Research said foreign participation eased after surging the week before as the foreign average daily trade value (ADTV) retreated 26% to settle below RM1 billion at RM943.3 million.

It said the retail market remained subdued as the retail ADTV declined by 4.5% from RM995.3 million to RM950.1 million.

 

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