Foreign selling on Bursa Malaysia slowing down

KUALA LUMPUR: Foreign funds continued to make their way out of Bursa albeit at a slower pace, bringing the foreign net selling spree to the ninth week, according to MIDF Research.

“Based on data from Bursa, foreign funds sold RM382.6mil net of local equities during the holiday-shortened week,” the research house said.

Tuesday which was the first trading day of the week recorded a moderate foreign net outflow of RM74.2m net, the lowest in 10 trading days.

In comparison with other regional peers, MIDF said the level of foreign net selling on Tuesday on Bursa was lower than Indonesia and Taiwan amidst jitters caused by President Trump’s crackdown on Huawei Technologies Inc.

MIDF said the level of foreign net outflows later swelled to RM178.7mil net on Thursday while the local stock barometer slipped 0.1% to close at 1,602 points as the latest US Federal Reserve minutes indicated that the rate cut which markets are expecting by year end may not necessarily materialise.

In addition, sentiment on that day was weighed down by reports of the U.S government considering more bans on several Chinese technology companies.

Nevertheless, the pace of foreign investors exiting Bursa took a slight breather on Friday as only RM129.6mil net of local equities were disposed.

Threats from the U.S to impose duties on nations which undervalue their currencies against the greenback kept the foreign net selling activity from going down below RM100mil.

“With a week left before the month of May ends, Malaysia has recorded a foreign net outflow of RM2.09bil for the month. This brings the year-to-date foreign net outflow from Malaysia to RM4.85bil,” MIDF said.

Thailand is also another market with a year-to-date foreign net outflow of US$741.7mil or approximately RM3.10bil.

Foreign investors were the only investor group which saw an increase in participation during the week.

The average daily traded value (ADTV) of foreign investors surged by 20.5% to RM1.46bil, a level not observed in 10 weeks.

Last week, Tenaga Nasional Bhd registered the highest net money inflow of RM9.80mil, British American Tobacco Bhd recorded the second highest net money inflow of RM5.66mil and Top Glove Corp Bhd saw the third highest net money inflow of RM4.12mil.

On the other hand, Public Bank Bhd saw the largest net money outflow of RM27.29mil last week.

Genting Bhd recorded the second largest net money outflow RM13.24mil during the week while Hong Leong Bank Bhd registered the third largest net money outflow of RM9.82mil.

Markets , Bursa , MIDF , fund flow