Foreign selling on Bursa Malaysia slowing down


KUALA LUMPUR: Foreign investors took a slight breather from selling off stocks listed on Bursa Malaysia, according to MIDF Research.


“Based on data from Bursa, foreign funds sold RM289.3mil net of local equities last week.


“So far in 2019, international funds have been net sellers on Bursa for nine out of fifteen weeks,” the research house said in its weekly fund flow report.


International funds started the week with a decent foreign net outflow of RM12.0mil on Monday, the lowest in 11 trading days.


The level of foreign net selling jumped by more than four times on Tuesday to reach RM53.1mil as Bursa’s telecommunication index led decliners amongst the sectoral indices.


MIDF said investors shrugged off the cut in the International Monetary Fund’s economic growth outlook for 2019 from 3.5% to 3.3%.


“As such, offshore investors made their way back to Malaysian shores on Wednesday to a tune of RM67.6mil net, a level not seen in 17 trading days,” it said.


The next two days saw the resumption of foreign net selling on Bursa but at a higher pace of above RM100mil.


MIDF said Thursday recorded the highest foreign net outflow during the week at RM165.4mil due to the report of Khazanah Nasional Berhad offering the sale of Tenaga Nasional Bhd (TNB) shares under a share placement to raise RM1.05bil, causing the share price of TNB to drop by 4.1%.


The FBM KLCI closed at the 1,624 points, the lowest close since late December 2016.


MIDF noted that the announcement of the continuation of the ECRL project at a lower cost on Friday helped to reduce foreign net selling level to RM126.4mil.


The local bourse reacted positively to the announcement by gaining for the first time in three days to settle at 1,630 points on Friday.


“On a year-to-date basis, foreign funds have sold RM2.05bil net of local equities.


“Amongst the four Asean markets we monitor, Malaysia retains its position as the nation with the largest foreign net outflow amongst the four Asean markets we monitor,” MIDF said.


Meanwhile, amongst the seven Asian markets MIDF tracks, India is the nation with the largest foreign net inflow worth more than US$8.5bil or RM30bil as the general election held in phases had began in the republic.


Markets , Bursa , MIDF , fund flow