Foreign investors continue selloff for fourth consecutive week

KUCHING: International investors continued to dispose stocks listed on Bursa Malaysia for the fourth straight week.

Nonetheless, it has been the second week in a row whereby foreign selling levels have eased, declining from minus RM82.9 million net the previous week to minus RM54.2 million last week.

MIDF Amanah Investment Bank Bhd (MIDF Research) said this was the second lowest attrition experienced this year after the one recorded not so long ago in August which amounted to minus RM48.5 million.

The estimates made were based on transactions in the open market which excluded off market deals.

“Except on Monday and Friday – when there was marginal foreign buying that was below minus RM30 million on each day – selling dominated the rest of the trading week,” it said in a note yesterday.

“There was a notable peak in foreign selling on Friday at minus RM73 million net, as the positive Malaysian data released this week which included distributive trade and industrial production, did not act as a strong catalyst to attract foreign buying.”

However on the same day, the FBM KLCI slightly gained by 0.08 per cent to settle at 1,755 points.

MIDF Research noted that last week’s foreign selloff was in conformity with what was seen in South East Asian peers, notably Indonesia and the Philippines.

“Last week’s attrition reduced the cumulative net foreign inflow into shares listed on Bursa to RM9.47 billion net slightly lower than the peak of RM11.08 billion in September,” it observed.

“The cumulative amount is still impressive compared to minus RM3.01 billion and minus RM19.5 billion recorded in 2016 and 2015, respectively.”

Meanwhile, foreign participation remained muted with the foreign average daily trade value (ADTV) remaining slightly unchanged, only increasing by five per cent to RM795 million from RM757 million.

It stayed below the RM800 million level for the second week, MIDF REsearch observed.

In contrast, the retail market rebounded as the retail ADTV increased by 15.2 per cent to be near the RM1 billion mark.

MAHB registered the highest net money inflow of RM5.24 million last week, as Time Dotcom recorded the second highest net money inflow of RM4.13 million followed by Genting Malaysia in third place with RM3.04 million.

KL Kepong saw the largest net money outflow of RM29.59 million last week followed by Sime Darby Bhd with RM27.82 million outflow and CIMB Group Holdings Bhd in third with RM17.77 million.

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