Foreign investors turn net sellers again

  • Markets
  • Monday, 18 Feb 2019

Phillip Capital Management Senior Vice President (Investment) Datuk Dr Nazri Khan said US equities closed lower on last Thursday after a revisit towards the S and P 500's November highs on trade war updates, while US Treasuries slid, and Brent crude dropped a dollar from the four-month peak to halt an incline in European energy stocks.

KUALA LUMPUR: Foreign funds turned net sellers on Bursa last week, snapping the five-week buying spree on Bursa.

“Based on data from Bursa, foreign funds took out RM369.2mil net of local equities, the largest weekly foreign net outflow in eight weeks,” MIDF Research said in its weekly fund flow report.

The research house said on a daily basis, the five-day foreign net buying streak came to an end on Monday as global funds sold RM41.6mil net of local equities.

Foreign investors slowly returned to Bursa on Tuesday at a tune of RM6.6mil net, the lowest level in a day since early November last year.

However, RM122.1mil net of equities were taken out by foreign funds on Wednesday as investors ignored President Trump’s flexibility on the deadline for trade negotiations with Beijing.

Likewise, the local bourse shed 2.11 points or 0.1% to end at 1,685 points, the lowest close during the week.

Meanwhile, other Asian peers namely South Korea and Taiwan recorded sizeable foreign net inflows.

MIDF said although foreign net selling still occurred on Thursday and Friday, the pace slowed down to RM106.4mil and RM105.7mil, respectively.

Malaysia’s 4Q18 gross domestic product growth of 4.7% year-on-year which was above market expectations of 4.5% year-on-year estimates helped to ease the jitters coming from the deceleration in China’s factory inflation in January 2019 which slowed down for the seventh uninterrupted month

“For the first half of February 2019, offshore investors have so far disposed RM206.0mil net, lowering the year-to-date foreign net inflow into Malaysia to RM820.1mil,” MIDF said.

It added that Malaysia was not the nation with the lowest foreign net inflow amongst the four Asean markets it monitor with Indonesia taking the lead with a year-to-date net inflow above RM3.0bil while Thailand is the only one with a net outflow.

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