Foreign funds sold RM257.7m of Malaysian equities: MIDF Research

  • Markets
  • Monday, 14 Jul 2014

KUALA LUMPUR: Foreign funds remained net sellers on Bursa Malaysia in the week ended July 11 when it disposed of RM257.70mil of equities, says MIDF Equities Research.

It said on Monday this was the first weekly deficit in 12 week and the amount disposed off was the highest since March 2014, which was in contrast with the neighbouring markets.

“On cumulative basis, foreign investors remained net sellers of Malaysian stocks in 2014, and the net outflow as of last Friday had increased to net -RM1.81bil. In 2013, Malaysia reported a net inflow of +RM3.0bil,” it said.

MIDF Research said foreign investors sold every day last week, except on Thursday. The sell-down peaked on Friday when an amount of -RM146mil was offloaded, the highest since March 14, 2014.

“However, we are not raising the alarm bell yet as the daily outflow has not exceeded RM200mil, which is when the intensity of the sell down begins to be felt, in our opinion,” it said.

The research house noted that foreign participation rose significantly as the average daily foreign gross purchase and sale on Bursa Malaysia increased to RM942mil from RM767mil the week before.

It said the retail market remained in a bearish mode, with investors offloading -RM137mil last week. Participation rate also increased to RM905mil, the highest in 11 weeks.

“We note that retailers bought on Friday, as opportunistic buying emerges at current price level.

“Local institutions supported the market last week, mopping up RM395mil. Participation rate remained elevated for the third week running at RM2.5bil,” it said.

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