Foreign investors on a selling spree, pull out a staggering RM5.83bil in May

  • Markets
  • Monday, 04 Jun 2018

The research house said this was largely because the FBM KLCI has generally yielded positive returns in the three-month periods up to the past election polling dates, apart from robust headline economic indicators which support the ringgit and investment sentiment. The GE14 is widely expected to be held in March or April next year.

KUALA LUMPUR: Foreign investors have pulled out a total of RM5.83bil from Bursa Malaysia as foreign funds continued its selling spree.

“For the month of May, foreigners withdrew RM5.83b net, the highest monthly outflow in 2018 thus far,” MIDF Research said in its weekly fund flow report.

“Meanwhile, the year-to-date outflow from Malaysia is RM2.12bil or US$530.7mil net, which is still the lowest among the four Asean markets that we track,” the research house said.

MIDF said Malaysian equities experienced the fifth week of foreign selling, the longest selling binge recorded so far this year.

Last week, foreign funds sold a total of RM1.27bil net, compared with the RM892.4mil net disposed in the week before.

With foreign selling on every single day of the week, the selling streak has extended to 19 days, the longest since the 21-day binge in May to June 2015.

MIDF said Monday’s attrition stood at RM216.5mil, a level which is normal at this juncture.

However, foreign funds pulled out RM609.2mil net on Wednesday, the highest in a day since May 15, 2018 after Tuesday’s break following the cancellation of the MRT3 project.

MIDF noted that the heavy selloff was also in conformity with other Asian peers namely, Korea, the Philippines and Taiwan amid the political upheaval in Italy and Spain.

The FBM KLCI settled at 1,719 points on the same day after plunging by 3.18%, the biggest daily drop since 2008.

The attrition on Thursday later shrank to RM217.9mil net following efforts to form a coalition government in Italy, coinciding with the FBM KLCI’s 1.24% gain.

Attrition levels were little changed on Friday at RM225.2mil net as investors waited for the next round of trade talks between the U.S and China over the weekend.

Foreign participation spiked as the foreign average daily trade value (ADTV) surged by 174% to an all-time high of RM4.25bil.

This was mainly attributable to the MSCI rebalancing on Thursday which boosted the total trading value on Bursa to a record high of RM9bil.

Meanwhile, Top Glove Corp Bhd registered the highest net money inflow of RM15.93mil last week.

British American Tobacco recorded the second highest net money inflow of RM8.96mil while Tenaga Nasional Bhd saw the third highest net money inflow of RM8.09mil last week.

On the other hand, Genting Bhd saw the largest net monet outflow of RM12.46mil.

Hong Leong Bank recorded the second largest net monet outflow of RM11.24mil while Public Bank registered the third largest net money outflow at RM6.37mil.

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