Foreign fund outflow accelerates to RM464.1m

KUALA LUMPUR: Net money outflow from the Malaysian equities market grew last week to RM464.1mil from RM314.3mil in the week prior.

MIDF research noted that foreign investors continued on their selling streak for a seventh week, with the average weekly level of net foreign selling over that period coming to RM250.9mil.

Slumping oil prices and the US rate hike weighed on every day of the previous week, peaking at RM143.7mil on Thursday. 

"The concerns over oil situation were seen rising as the crude oil price fell about -5.1% on Thursday. On Friday, the Brent settled at USD53.8pb, the lowest levels for more than a year on worries of oversupply," said MIDF.

The heavy sell off on Thursday saw a 0.31% drop in the FBM KLCI although the index rebounded strongly on Friday to 1,670 due to window dressing and index rebalancing activities.

"This week, index is expected to continue gaining supports on the likelihood of further window dressing activities ahead of the year-end," said the research house.

It added that for the total foreign net outflow in December thus far comes to RM858.7mil. Now in the final week of the trading year, the cumulative net outflow in the year so far has reached RM11.5bil.

Foreign participation grew over the last week with foreign average daily trade value rising 16.1% above RM1bil to settle at RM1.2bil. MIDF noted that gross foreign trade was over RM1bil over four out of five trading days.

The retail market also surged, 17.6%, to settle at RM706.1mil.

The stocks that saw the highest money inflows were CIMB, F&N and Petronas Dagangan.  Meanwhile, Genting, Dialog and Tenaga Nasional saw the most money outflows.

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