An analyst told Bernama that the macro factors expected to affect the FTSE Bursa Malaysia KLCI next week, includes the Group of Seven(G7) meeting as investors search for clues on the trade outlook, as well as the timing of the next interest rate hike by the US Federal Reserve (Fed) which meets on June 12.
KUALA LUMPUR: Overseas investors reduced their holdings in Bursa Malaysia equity for the 10th consecutive week from July 2 to 6, marking the longest weekly selling streak since September 2015.
MIDF Research said in its weekly fund flow report that foreign funds sold RM704.3mil in equity last week, little changed from the RM705.4mil in the week before.
This brings the cumulative outflow from Malaysia so far this year to RM7.53bil, which offsets 75% of the total foreign inflow of RM10.33bil last year.
"Nevertheless, Malaysia still has the second lowest outflow amongst the 4 ASEAN markets we monitor after the Philippines on a year-to-date basis," said MIDF.
Foreign average daily traded value declined 26% to under RM1bil. The retail market however remained healthy and little changed from the previous week with an average daily trade value of RM807.7mil
The research house noted that foreign investors were net sellers on every day of the previous week although the magnitude of foreign selling from Monday to Thursday was contained to a range of RM45mil to RM100mil.
"During this period of modest selling activity, the highest daily outfl ow of -USD100.4m occurred on Tuesday, coinciding with the FBM KLCI’s lowest closing point of 1,680 points within the same period."
On Friday, foreign selling surged to RM393.6mil, the highest in a day since June 21, along with other regional peers South Korea and the Philippines.
"It was no doubt that the main cause for Friday’s major selloff was due to the U.S-China trade dispute whereby the U.S offi cially activated a 25% tariff on USD34b of Chinese goods followed by an immediate tit-fortat measure by the Chinese government," said MIDF.
The top three counters with the highest money inflows were Tenaga Nasional, Public Bank and Genting Malaysia. The counters that led the money outflows were Malayan Banking, MyEG services and Top Glove Corp.
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