KUALA LUMPUR: Foreign selling of Malaysian equities on Bursa Malaysia intensified to RM903.2mil last week, the highest attrition in 21 weeks, according to MIDF Research.
The research house said offshore investors marked their fourth straight week of exiting Malaysia, at a relatively stronger pace.
“Foreign net selling occurred on every single day of the week, stretching the daily selling streak to 12 days, matching the period between July 2 and 17, 2018.
“Based on data from Bursa, foreign funds pulled out RM903.2mil net of local equities, the largest in 21 weeks,” MIDF said in its weekly fund flow report.
The research house noted that foreign net outflow reached RM198.6mil on Monday before swelling further to RM263.3mil on Tuesday, the largest in a day so far this year.
Nonetheless, MIDF observed that the massive sell down was in sync with other Asian peers namely South Korea, Indonesia and Taiwan after an overnight sell-off on Wall Street amidst an unexpected 0.6% fall in U.S construction spending for December 2018.
The level of foreign net selling gradually tapered on the next two days to reach RM105.2mil on Thursday.
However, a heavy selloff occurred again on Friday at a tune of RM193.3mil net.
Losses across Asian markets including Malaysia accelerated following the 20.7% year-on-year slump China’s exports in February 2019.
For the first six trading days of March 2019, international investors have sold RM1.06bil net. As such, foreign funds have so far disposed RM849.9mil net on a year-to-date basis.
“On the regional front, Malaysia is now the nation with the highest foreign net outflow amongst the four Asean markets we monitor while Indonesia continues to lead with a year-to-date foreign net inflow of US$817.9mil or above RM3bil amidst the pre-election hype taking place in the nation,” MIDF said.
The research house also noted that that participation amongst the three investor groups remained healthy.
However, only foreign investors saw an 18.4% decrease in terms of average daily traded value (ADTV) last week while local institutions and retail investors experienced an increase