KUALA LUMPUR: Foreign selling on Bursa Malaysia slowed down to RM598.7mil in the week ended Oct 2, compared with RM1.27bil in the previous week, according to MIDF Equities Research.
It said on Monday investors classified as “foreign” were net sellers every single day last week. Selling was relatively heavy on Monday and Thursday, reflecting spillover of negativities from the previous week’s global paranoia and apprehensions over emerging markets as a whole.
“For 2015, last week’s attrition raised the cumulative net foreign outflow to RM18.3bil, almost three times the RM6.9b outflow for the entire 2014. More importantly, we believe the overhang of foreign liquidity in the market is now at its lowest since the Financial Crisis of 2007.
“We estimate the size of the overhang to have dropped to that below RM10bil for the first time last week, for funds which came in since early 2010,” it said.
MIDF Research said foreign participation rate stayed elevated last week. The average daily gross volume was RM1.14bil, picking up from RM1.08b the week before.
However, last Tuesday, the volume was only RM1.15bil although net sale amounted to RM216mil.
Local institutions were passive buyers, mopping up RM539.1mil net on RM2.0bil participation rate. Average volume had surpassed the RM2bil mark in the last eight eight consecutive weeks.
“Meanwhile, retailers remained net buyers, purchasing RM59.6mil, after a record haul for 2015 in the preceding week. Nevertheless, participation rate eased to RM664m, indicating falling speculative element in the market,” said MIDF Research.
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