Foreign funds offload RM600.7mil from Bursa for 18th straight week

KUALA LUMPUR: Foreign funds continued to reduce their exposure on stocks listed on Bursa for the 18th consecutive week, according to MIDF Research.

“Based on data from Bursa, international investors sold RM600.7mil net of local equities last week, a slight increase in the week before,” the research house said in its weekly fund flow report.

So far in 2020, foreign investors have sold RM15.7bil net on Bursa.

“In comparison with the other six Asian markets we track, Malaysia still has the fourth smallest foreign net outflow on a year-to-date basis,” MIDF said.

As markets reopened on Monday last week, international investors took out RM358.9mil net of local equities which was a similar trend for all Asian markets on fear of a resurgence in Covid-19 outbreak.

Nevertheless, MIDF said foreign funds came into the local market at a tune of RM101.6mil net on Tuesday, snapping the 3-day selling spree on Bursa.

However, the foreign net buying in the local market was short-lived on Wednesday as international funds sold RM83.3mil net.

MIDF said investors’ appetite probably was adversely affected by the political instability in the country with a higher likelihood of a snap election taking place as well as the fresh outbreak of the virus in Beijing.

The level of foreign net selling increased for consecutive three days to RM155.4mil on Friday.

In terms of participation, foreign investors were the only group that experienced a weekly increase in their average daily traded value (ADTV) of 7.9% to reach RM1.62b.

Last week, Top Glove Corp Bhd registered the highest net money inflow of RM15.02mil last week.

Kuala Lumpur Kepong Bhd recorded the second highest net money inflow of RM10.88mil while Hong Leong Bank Bhd saw the third highest net money inflow of RM8.54mil.

On the other hand, Serba Dinamik Bhd saw the largest net mon-ey outflow of RM8.69mil last week.

Kossan Rubber Industries Bhd recorded the second largest net money outflow RM4.55mil and Bursa Malaysia Bhd registered the third largest net money outflow of RM3.38mil last week.