Thursday 28 Mar 2024
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KUALA LUMPUR (July 27): Outflow of foreign capital from Bursa-listed companies resumed its intensity last week, after the Hari Raya break, according to MIDF Research.

In his weekly fund flow report today, MIDF Research head Zulkifli Hamzah said foreign investors had now been net sellers on Bursa for thirteen consecutive weeks, the longest stretch of back-to-back weekly selldown since the 2008 Financial Crisis.

“Last week, investors classified as “foreign” sold equity listed in the open market on Bursa amounting to RM830.1 million on a net basis.

“That was the fifth highest in a week this year,” he said.

Zulkili said foreigners were net sellers every day last week.

“Indeed, selling remained unrelentless and net outflow had been recorded in the last 54 out of the last 60 trading days — that is since April 29, 2015 which marked the beginning of the current wave of foreign liquidity exiting Malaysian equity.

“We note that foreign withdrawal exceeded RM200 million only on Tuesday when investors offloaded RM269 million, the tenth highest in a day this year.

“It was also the 23rd time that the figure exceeded the RM200 million mark this year, matching the count for the entire 2014,” he said.

However, Zulkifli reiterate his view that the heaviest of the foreign selldown was in the past.

“For 2015, last week’s selldown increased the cumulative net foreign outflow to RM10.9 billion, significantly surpassing the RM6.9 billion outflow for the entire 2014,” he said.

He said despite the significant outflow, foreign participation remained “moderate”.

Zulkifli said daily volume for the week averaged only RM775 million, the second lowest this year.

“Foreign trading volume fell below RM600 million on Friday.

“Local institutions mopped up RM874 million in the open market last week on a depressed participation rate of only RM1.65 billion, the second lowest in 2015,” he said

Zulkifli said retailers sold RM43 million net, on rising participation.

He said average daily gross trade rose to RM744 million, the highest in 9 weeks.

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