Bursa Malaysia sees second straight week of net foreign selling


KUALA LUMPUR: Offshore funds remained as net sellers on Bursa for the second week, marking the third weekly inflow so far this year.


“Based on data from Bursa, foreign funds took out RM319.0mil net of local equities which was not much of a change from the RM369.2mil net outflow in the preceding week,” MIDF said in its weekly fund flow report.


The research house said  Monday recorded a foreign net inflow of RM118.1mil net, the highest inflow recorded during the week amidst signs of progress from the U.S-China trade negotiations.


Global investors later disposed RM47.7mil net of local equities on Tuesday while the local bourse inched 0.8% to close above 1,700 points for the first time since Jan 25, 2019.


“Foreign funds made a modest return, snapping up RM27.0mil net on Wednesday, coinciding with the FBM KLCI’s biggest daily gain since late December 2018 of 1.15%.


“The rally was partly attributable to Wall Street’s modest start to the week as well as rising Brent crude oil price which climbed above US$66 per barrel,” MIDF said.


However, foreign net selling was back on Bursa on Thursday to a tune of RM116.2mil which then swelled to RM300.2mil on Friday.


The research house said much of the sentiment was affected by the Malaysia’s consumer prices declining by 0.7% year-on-year in January, the first contraction since 2009.


“With 4 trading days left in the month of February 2019, foreign investors have so far disposed RM525.1mil net, bringing the year-to-date foreign net inflow into Malaysia to RM501.4mil or US$120.4mil,” MIDF said.


On the regional front, the research house said Malaysia remained as the nation with the lowest foreign net inflow amongst the four Asean markets it monitors with Indonesia taking the lead with a year-to-date net inflow of US$755.8mil or approximately RM3.0bil.


Meanwhile, participation amongst all investor groups increased during the week. Foreign investors recorded the largest weekly advance in average daily traded value (ADTV), increasing by 41% to remain above the healthy level of RM1bil.


Markets , MIDF , fund flow , Bursa Malaysia