Net foreign fund outflow widens to RM11.1b


  • Analyst Reports
  • Monday, 17 Dec 2018

KUALA LUMPUR: Foreign fund outflows from Bursa Malaysia over last week rose to RM314.3mil net of local equities, which was more than three times the amount withdrawn in the preceding week.

MIDF research noted that the net outflow from the local stock exchange, which was in its sixth straight week, had reached RM11.1bil year to date.

"Although this amount offsets last year’s net inflow, Malaysia is still the nation with the second lowest year-todate outflow amongst the seven Asian markets we monitor," it said.

Foreign investors were net sellers on Monday as disappointing China inflation and trade date weighed on investor sentiment.

On Tuesday, the selling continued as US Prime Minister Theresa May postponed a parliamentary Brexit cote while Japan's GDP contracted the most over four years.

Snapping the four-day selloff, offshore investors turned net buyers on Wednesday and Thursday, with the latter recording a foreign net inflow of RM123.3mil, the highest since early November.

"Optimism on these ways were sparked by the U.S-China trade war thaw as China planned to cut tariffs on U.S-made to 15% from 40%. 

"The local bourse followed suit to record gains above 0.5% on both days."

However, sentiment hit a weak note on Friday as China's retail sales were showed to grow at its slowest since 2013 while its industrial output rose the least in three years.

Foreign funds pulled out RM133.1mil net of equities from Bursa on the day, said MIDF.

Counters that saw the higest net money inflow for the week were CIMB, Sime Darby and Kossan Rubber Industries.

Net money outflow was topped by Petronas Chemicals, Dialog and Kuala Lumpur Kepong.

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