Foreign fund flow on Bursa turns negative


  • Markets
  • Monday, 19 Jun 2017

MIDF Research says cumulative net foreign inflow into Bursa for 2016 fell to RM2.42bil

KUALA LUMPUR: After 18 relentless weeks of buying, foreign investors succumbed to negative global sentiment and lifted their foot off the pedal on Bursa Malaysia, according to MIDF Research.
 
The research house said the outflow was contained as the selling by international fund managers amounted to only RM99.6mil in four days of trading. 
 
This is based on preliminary data from Bursa which excluded off-market trades.
 
“There was relatively heavy foreign selling on Friday of RM189.3mil, the highest in a day this year, after the Fed rate hike on Thursday and gains in U.S. treasury yields which boosted the U.S dollar,” MIDF said in its weekly fund flow report. 
 
 Despite the deficit last week, cumulative year-to-date purchases by foreign investors still amounted to RM10.3bil net. 
 
In fact, foreigners have been net sellers in only three out of 24 weeks in 2017.
 
“On a positive note, foreigners were actively trading Malaysian equity last week. Foreign participation was vibrant as foreign average daily trade value (ADTV) rose above the RM1bil mark, increasing by 40% for the week, from RM999mil to RM1.4bil. 
 
“Indeed foreign participation exceeded RM1bil in three out of four trading days last week,” MIDF noted. 
 
In contrast, the retail market was rather sluggish. Retail ADTV declined by 9.3% for the week to RM812.7mil from RM896.2mil the
week before.
 
Tenaga Nasional stocks were the beneficiary of the highest net money inflow of RM20.34mil for the third week running.
 
Its share price outperformed the benchmark index with a 0.28% gain during the review week.
 
The second highest net money inflow was into KLCC Stapled Group which amounted to RM10.06mil and Gamuda saw the third highest net money inflow of RM6.53mil.
 
CIMB Group saw the largest net money outflow of RM7.63mil last week and Lingkaran Trans Kota recorded the second largest net money outflow of RM7.05mil. 
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