KUALA LUMPUR (Oct 22): Sale of local equities by international funds narrowed to RM128.7 million last week from RM1.05 billion the prior week, said MIDF Amanah Investment Bank Bhd Research.
In his weekly fund flow report today, MIDF Research’s Adam M Rahim said this was approximately one eighth smaller than the amount withdrawn in the preceding week.
“International investors were net sellers on four days. Offshore funds first sold RM77.9 million net on Monday, pulling the local bourse 0.12% lower to end at 1,729 points.
“Risk-off tone was sparked by intensified US-Saudi tensions over the disappearance of Jamal Khashoggi, a Saudi columnist,” he said.
Adam said foreign net selling then shrank to just RM17.3 million on Tuesday before spiking up to RM31.8 million on Wednesday while the FBM KLCI advanced 0.22% to 1,740 points, the highest closing during the week.
He said nonetheless, Bursa Malaysia’s nine-day foreign selling streak came to an end on Thursday as offshore funds acquired RM33.3 million net.
Adam said amongst the four ASEAN markets he tracks, Malaysia was the only country experiencing inflows that day as sentiment was hampered by the Fed’s hawkish stance highlighted in its latest minutes of meeting.
However, he said foreign investors were back in selling mode on Friday, withdrawing RM35.0 million net after technology stocks slumped gain on Thursday in addition to several industrial companies reporting weak quarterly earnings.
“So far, Bursa has seen a net outflow of RM1.2 billion for the month of October, bringing the year-to-date outflow to RM9.8 billion.
“Nevertheless, Malaysia still remains as the country with the second lowest outflow amongst the four ASEAN markets we monitor,” he said.
Adam said participation amongst foreign investors, local institutional funds and investors in the retail market took a slight breather last week as their weekly average daily traded value went lower by more than 10% compared to the preceding week.
Nonetheless, he said participation of each respective investor group remained at its healthy level.