Offshore investors were back in selling mode on Bursa Malaysia, MIDF Research observed in its latest fund flow report. — Reuters photo
KUCHING: Offshore investors were back in selling mode on Bursa Malaysia last week, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) observed in its latest fund flow report.
According to MIDF Research, based on data from Bursa, foreign funds dumped RM415.3 million net of local equities last week, cancelling off the RM350 million net acquired in the preceding week.
“President Donald Trump’s suspension plans on punitive tariffs on goods from Mexico mainly spurred risk on mood on Bursa, attracting RM59 million net of foreign inflows on Monday,” the research arm said.
“Apart from that, the anticipation of economic stimulus from the US Fed also lent support to investors’ appetite.
“As such, the foreign net buying streak was stretched to six days, the longest since nine-day selling spree observed from the middle to the end of January 2019.
“The local bourse followed suit to advance 0.4 per cent higher to settle at 1,655 points on the same day, the highest since March 22, 2019.”
However, MIDF Research highlighted that it was a chaotic Tuesday as international funds offloaded RM101.5 million net of local equities, dragging the FBM KLCI by 0.3 per cent to reach 1,651.2 points.
It pointed out that the mood turned sombre as Trump threatened to raise tariffs on China again if President Xi Jinping does not attend the G20 summit at the end of this month.
On Wednesday, the research arm noted that the foreign net outflow continued to reach RM143.2 million net partially caused by the protests in Hong Kong against the proposed law allowing its citizens to be extradited in China.
“There were signs of relief on Thursday as foreign net selling receded below RM100 million to RM23.3 million.
“However, this was shortlived as foreign investors dumped RM206.2 million net on Friday amidst jitters caused by the industrial output of China which slowed down to the weakest in 17 years and the attack on two oil tankers in the Middle East in the gulf of Oman.”
MIDF Research also highlighted that with two more weeks of trading left in June 2019, foreign investors have so far disposed RM65.3 million net.
“On a year-to-date basis, the foreign net outflow from Malaysia stands at RM4.86 billion.”
Meanwhile, it noted that average daily traded value (ADTV) of all investor groups (retail, institution and foreign) increased for the week as the majority returned back from the festive holidays.
Overall, Hong Leong Bank Bhd registered the highest net money inflow of RM13.35 million last week, followed by Petronas Chemicals Group Bhd with the second highest net money inflow of RM12.54 million.
Tenaga Nasional Bhd saw the third highest net money inflow of RM12.35 million.
On outflows, Petronas Dagangan Bhd saw the largest net money outflow of RM7.04 million last week.
Telekom Malaysia Bhd recorded the second largest net money outflow RM5.3 million during the week under review while Top Glove Corporation Bhd registered the third largest net money outflow of RM4.51 million.