Foreign selling on Bursa Malaysia hits RM13.3bil year to date

  • Markets
  • Monday, 01 Jun 2020

KUALA LUMPUR: The year-to-date foreign net outow from Bursa Malaysia surpassed RM13nil last Friday to touch RM13.3bil, according to MIDF Research.

Nonetheless, the research house said it is still the third smallest foreign net outflow amongst the seven Asian markets it monitors.

MIDF said the intensity of foreign net selling activity on Bursa softened during the holiday-shortened week.

“Based on data from Bursa, international investors sold RM663.8mil net of local equities last week compared to the RM714.7mil disposed in the week before,” the research house said in its weekly fund flow report.

As Bursa reopened from a long weekend, international investors dumped RM362.5mil net of local equities on Wednesday, the highest foreign net outflow in a day since the middle of March 2020.

Nevertheless, retail and local institutional investors mopped up local equities at a tune of more than RM100mil net with strong interest in rubber glove counters, pushing the local bourse 1.0% higher on the same day.

Offshore investors continued to sell on Thursday but at a slower pace of RM227.1mil net.

MIDF noted that the risk-on sentiment on that day was boosted by Wall Street’s overnight rally which saw the Dow Jones soar 553 points on mounting optimism that global authorities were taking measures to enhance economies.

For instance, the European Commission proposed an US$826bil stimulus package to aid recovery from the economic slowdown induced by the Covid-19 pandemic.

Foreign net selling on Friday reduced to a level below RM100mil at RM74.2mil as positivity grew for economies in Asia and will gradually reopen from pandemic lockdowns.

The local stock barometer followed suit to settle 1.0% higher at 1,473.3 points, the highest close in more than a month.

In terms of participation, only foreign investors saw a substantial weekly increase in their average daily traded value (ADTV) to reach RM3.5bil. This is the largest weekly ADTV since the week ended June 1, 2018.

Last week, Kuala Lumpur Kepong Bhd registered the highest net money inflow of RM10.31mil.

Kossan Rubber Industries Bhd recorded the second highest net money inflow of RM5.40mil while Bursa Malaysia Bhd saw the third highest net money inflow of RM4.82mil.

On the other hand, Top Glove Corp Bhd saw the largest net money outflow of RM5.62mil last week.

MMC Corp Bhd recorded the second largest net money outflow of RM4.13mil while Maybank posted the third largest net money outflow of RM3.24mil last week.

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MIDF , fund flow , Bursa Malaysia


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