Foreign funds net sellers on Bursa Malaysia last week

  • Markets
  • Monday, 10 Jul 2017

Affin Hwang Investment Bank Vice President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) would remain buoyant and touch 1,730.

KUALA LUMPUR: Foreign investors continued pulling out from Malaysia albeit at a slower momentum last week, according to MIDF Research.

Based on preliminary data by Bursa Malaysia, the amount sold was RM205.5mil net, the second highest out of the only five weeks that net sale had been recorded this year.

This is estimated based on transactions in the open market and excluded off market deals.

“The heaviest foreign selling during the week was recorded on Tuesday with net disposals reaching RM139.2mil net as geopolitical tensions heightened on the back of the ICBM test by North Korea,” MIDF said in its weekly fund flow report.

The research house noted that that the markets in Indonesia, Thailand and the Philippines were also the casualties of foreign attrition on Tuesday.

For the week ended July 7, 2017, foreign withdrawal reduced the cumulative year-to-date net inflow to below the RM10bil mark, at RM9.96bil.

Notwithstanding this, the year-to-date inflow into Malaysia still offsets approximately 30% of the total outflows in 2014-2016.

Foreign participation eased last week, as its average daily trade value (ADTV) declined by 36% for the week, from RM1.24bil to RM792.2mil.

Indeed, foreign daily trade value during the week only ranged from RM710mil to RM820mil compared to above RM1bil before.

In contrast, the retail market continued to slow down with its ADTV slightly unchanged at RM627.5mil, below RM800mil level for the third consecutive week.

Last week, Maybank stocks were the beneficiary of the highest net money inflow of RM39.59mil while the second higher net money inflow beneficiary was KL Kepong at RM13.95mil.

Maxis saw the third highest net money inflow of RM10.49mil. MIDF said Its share price underperformed the benchmark index with a 1.08% loss during the review week.  

MIDF said the net inflow amidst declining share price indicated a buy-on-weakness (BOW) stance among some investors.

The company announced that its 3G radio access network sharing and alliance agreement (NSA) with U Mobile was terminated as it contributed less than 3% of revenue in 2016.

Meanwhile, Public Bank saw the largest net money outflow of RM16.41mil last week.

CIMB recorded the second largest net outflow of RM11.86mil last week while Sime Darby registered the third largest net money outflow of RM10.5mil.

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