An analyst told Bernama that the macro factors expected to affect the FTSE Bursa Malaysia KLCI next week, includes the Group of Seven(G7) meeting as investors search for clues on the trade outlook, as well as the timing of the next interest rate hike by the US Federal Reserve (Fed) which meets on June 12.
KUALA LUMPUR: Offshore investors sold RM162.1mil net of local equities last week as investors shifted to safer assets amid concerns over a US recession.
In its weekly fund flow report, MIDF research reported that the selldown on Bursa Malaysia was its second lowest weekly foreign net outflow so far this year.
In March, foreign investors sold a total of RM1.56bil in local equities, bringing 1Q19 foreign net outflow to RM1.35bil.
This compares to the foreign net inflow of RM2.2bil in the same quarter in 2018, preceding the country's 14th General Election.
"Amongst the four ASEAN markets we monitor, Malaysia is still the nation with the second largest foreign net outfl ow after Thailand which recorded a foreign net outflow of -USD407.3m or higher than -RM1.6b in 1QCY19," said MIDF.
Last Monday, the local stock exchange saw foreign net selling of RM34.8mil net of local equities, which coincided with a 1.1% drop in the FBM KLCI.
Some funds returned on Tuesday, to the tune of RM23.9mil, in tandem with foreign net buying in other Asian markets as major central banks moved to mitigate the slowdown in economic growth.
However, Wednesday and Thursday would be net selling days with investors disposing of a combined RM60mil in local equities.
"Sentiment was rather muted on those days mainly due to the 14%yoy drop in profi ts of China’s major industrial firm in January and February this year, signalling a softening economic growth of the nation," said MIDF.
The net selling tapered to RM15.6mil on Friday due to the re-starting of the US-China trade negotiations, which also triggered an influx of foreign funds into China's stocks.
Bank counters saw heavy trading interest among foreign investors over the previous week.
The counter that experienced the highest net money inflow over the week was Malayan Banking, which recorded foreign net buying of RM6.97mil.
This was followed by Hong Leong Bank, which had RM6.92mil net inflow of foreign funds, and MY EG Services, which had net money inflow of RM6.82mil.
The three counters with the largest net outflows were Petronas Chemicals, which registered RM23.01mil in net foreign selling; Public Bank, RM6.04mil; and RHB, RM4.6mil.
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