KUALA LUMPUR: Foreign funds step up selling of stocks on Bursa Malaysia to RM601.2mil last week, the largest weekly foreign net outflow in 11 weeks.
In its weekly fund flow report, MIDF Research said the pace of foreign net selling on Bursa last week accelerated significantly during the holiday-shortened week.
The research house said a marginal level of foreign net buying was observed on Monday at only RM250,000 before markets were closed on Tuesday in conjunction with the coronation of the Yang Di-Pertuan Agong.
As markets reopened on Wednesday foreign net selling swelled to RM334.3mil net, the highest in a day since May 16 net ahead of the Federal Reserve’s policy meeting in addition to the U.S-China trade talks which saw no major breakthrough.
Nevertheless, August started on a positive note as foreign investors mopped up RM40.6mil on Thursday driven by the share price of Press Metal Aluminium Holdings Berhad which surged 6.8% as it signed a power purchase agreement with Syarikat SESCO Berhad, a unit of Sarawak Energy Berhad to secure power for its capacity expansion in Sarawak.
This outweighed the disappointment from the Fed’s signal that the easing cycle will not being aggressive ahead.
“Havoc wreaked on Friday as foreign net selling returned to levels above RM300mil at RM307.8mil, pulling the local bourse down by 0.8% to the lowest close in more than a month at 1,626.8 points,” MIDF said.
The high amount of foreign net outflows was in conformity with other regional peer namely Korea, Thailand, Indonesia and Taiwan following President Trump’s plan to impose a 10% tariff on a further US$300bil worth of Chinese imports
“The month of July recorded a foreign net outflow of RM79.2mil, marking the fifth month of foreign net outflow for the year.
“On a year-to-date basis, the foreign net outflow from Malaysia stands at RM5.01bil,” MIDF said.
In contrast, MIDF said the other six Asian markets it monitor (Korea, Thailand, Indonesia, India, Taiwan and the Philippines) have seen a foreign net inflow so far for the year with India being the largest.