KUALA LUMPUR: Foreign funds accelerated their selling of equities on Bursa Malaysia to RM937.5mil last week against RM226.1mil in the preceding week, according to MIDF Research.
This was the 25th consecutive week of foreign net selling, MIDF said.
“So far in 2020, foreign investors have sold RM19.9bil 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 in its weekly fund flow report.
Foreign investors disposed of RM174.1m net of local equities on Monday, in spite of the Malaysia Leading Index (LI) rebounded to 0.6% year-on-year in May 2020 from -5.7% in the previous month.
This was also the highest recorded LI since Mar-20 due to the reopening of economic activities after the MCO.
Foreign net outflow increased to RM250.9mil and RM336.9mil on Tuesday and Wednesday last week respectively with the largest net outflow of the week on Wednesday.
MIDF noted that foreign net outflow subsided on Thursday at a tune of RM90.3mil, probably buoyed by the positive sentiments on another potential US stimulus package, better-than-expected US non farm payrolls of 1.76 million additional jobs in July 2020 and higher China’s exports of 7.2% year-on-year in July.
On Friday, foreign net outflow was the lowest at RM85.3mil, coinciding with Malaysia's industrial production index recorded a slower decline of 0.4% year-on-year in June, mainly supported by the recovery in manufacturing output.
“In comparison to another three South East Asian markets that we tracked last week, Malaysia recorded the second highest foreign net outflow while Thailand experienced the least,” MIDF said.
In terms of participation, the retail investors recorded a weekly increase of 50.4% in average daily traded value (ADTV) to RM8.4bil.
Meanwhile, foreign investors experienced the least weekly increase in ADTV by 8.6% to reach RM1.7bil which was above the healthy level of RM1.0bil.
Kossan Rubber Industries registered the highest net money inflow of RM6.76mil last week.
On the other hand, TIME Dotcom Bhd saw the largest net money outflow of RM7.29mil last week.
Inari Amertron Bhd recorded the second largest net money outflow RM5.21mil and MyEG Bhd registered the third largest net money outflow of RM4.33mil in the review week.