MIDF Research says cumulative net foreign inflow into Bursa for 2016 fell to RM2.42bil
KUALA LUMPUR: The pace of Malaysian equity attrition has slowed down a lot compared to the previous weeks, according to MIDF Research.
It noted that in the past five weeks, the average level of foreign selling stood at RM65.8mil.
“The net amount sold by foreign investors on Bursa last week was RM28.6mil, the lowest attrition recorded so far this year. The amount sold was also substantially lower than the RM92.1mil net recorded in the week before. The estimates made are based on transactions in the open market which excluded off market deals,” MIDF said in its weekly fund flow report.
Foreign investors sold Malaysian equity on three out of the five trading days.
“It was no surprise that Monday experienced a net foreign buying of RM133.4mil net, the highest since Sept 12 amid the feel good vibe from the Budget 2018 announcement. This even coincided with the FBM KLCI hitting a seven-day trading high of 1,748 points,” it said.
However, the positive mood was shortlived, as Thursday recorded the highest selloff during the week which amounted to RM72.3mil net.
The resumption of foreign selling saw the local bourse gradually slipping to end at 1,741 points on Friday despite a rally in regional peers notably, the Philippines and Indonesia and improving oil prices.
October is the third month of foreign selling this year as international investors sold off RM226.3mil net. As a consequence, the cumulative year-to-date number has been dragged down to RM9.28bil as of last week, far below the RM10bil mark.
Nonetheless,the cumulative year-to-date inflow still offsets approximately 31.6% of the total net outflows from 2014 to 2016.
Foreign participation continued to slip further as the foreign average daily trade value (ADTV) declined by 9% to settle at RM861mil.
Meanwhile, the retail market rebounded as retailers were net buyers to the tune of RM95.6mil with the retail ADTV surging by 18% to surpass the RM1bil level at RM1.12bil.
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