KUALA LUMPUR: MIDF Equities Research estimates net foreign selling of Malaysian equities had eased to -RM493mil in the week ended Nov 25 which was the lowest in the month.
It said on Monday on a cumulative year-to-date, the net selling from foreigners saw the fund flow turn negative to -RM1.37bil in contrast with net inflow of RM6.47bil in April.
“However, compared to 2015, the outflow amount is still considered low as only RM7.8bil has been redeemed since April. It was -RM19.5b net outflow in 2015,” it said.
MIDF Research said retail investors continued to be positive at RM502.9mil maintaining its levels in October. The buying on dips conviction was also stronger than last week which increased to RM105.1mil.
StarBiz reported there has been a substantial selldown in government bonds, led by foreign selling, since the aftermath of the US presidential election.
The rout in the country’s bond market saw the Malaysian Government Securities (MGS) yields rising at its fastest pace ever to around 15-month high in a matter of two weeks.
The ringgit is now hovering at its lowest levels in 19 years as a result of continued capital outflow. Bank Negara’s recent intervention in the foreign exchange market, coupled with the recent devaluation of the yuan and volatility in crude oil prices has only exacerbated the negative pressure on the Malaysian currency.
MIDF Research said Tenaga Nasional registered the highest net money inflow of RM21.70m last week. Nonetheless, its share price lagged the broader market with a slight -0.14% loss against the FBM KLCI which gained by 0.21% during the week under review.
“It is notable that net money inflow amidst retreating share price may indicate a buy on weakness stance among some investors,” it said.
The research house said Petronas Gas saw the largest net money outflow of –RM14.56mil last week. However, its stock price outperformed with a 1.71% gain vis-à-vis a smaller 0.21% rise in the FBM KLCI during the review week.
It is noteworthy that net money outflow amidst advancing share price indicates a sell-on-strength stance among some investors.
Hartalega
recorded the second largest net money outflow –RM2.16mil during the week under review. Its share price underperformed the market benchmark with a -1.23% weekly loss.
“Genting registered the third largest net money outflow at –RM1.87mil in the review week.
Nonetheless, its share price outperformed with a 2.04% gain which may attract a sell-on-strength stance among some investors,” it said.
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