KUALA LUMPUR: Foreign selling of Malaysian equities eased significantly in week ended Feb 21 to net RM93.5mil from net RM760.2mil in the week ended Feb 14, according to MIDF Equities Research.
The research house said on Monday that prior to the week ended Feb 21, foreign portfolio outflow had averaged -RM766mil this year, ranging from RM686mil to as high as RM1.26bil outflow in a week.
"The reversal in sentiment is reflected by the fact that foreign investors even turned net buyer on Bursa on Wednesday, the first time in 30 days. Although they were net sellers for the other four trading days of the week, daily outflow was capped at below RM110mil," it pointed out.
MIDF Research said year-to-date, a total of -RM5.63bil of foreign money had exited Malaysian equities.
"In the last 20 weeks (that is during the current phase of foreign selldown), a total of -RM11.30bil of foreign money had exited Malaysian equity. That translated into an average of -RM565mil a week," it said.
The research house said average daily foreign participation rate (average daily gross purchase and sale) tapered further to RM732mil from RM790mil the week before. It was the lowest participation rate in seven weeks.
"Retail investors' daily participation rate surged past the RM1bil mark to RM1.28bil, the highest since mid-August 2013. However, despite active participation, retailers bought only RM11mil net, indicating strong short-term trading approach.
"Local institutional funds turned significantly active, with participation rate hitting RM2.86bil, the highest since mid-May 2013. The fact that local funds mopped up only +RM82.6mil despite active participation reinforces our view that it is a trading market," it pointed out.
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