KUALA LUMPUR: Foreign funds have offloaded RM558.4mil net of local equities on Bursa Malaysia during the Sept 14-19 period against RM71.2mil net acquired during the previous period of Sept 7-12.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said Bursa’s international investors began the week by withdrawing RM187.9mil net of local equities last Monday.
The local bourse, however, was up by 0.4%, supported by net buying activity by retail investors who scooped up RM280.3mil of local equities as they weighed prospects for a Covid-19 vaccine.
AstraZeneca (AZN) disclosed that it has resumed British clinical trials of its Covid-19 vaccine which were suspended after a test patient fell ill.
Foreign net selling activity inched higher to RM223mil on Tuesday ahead of the Malaysia Day public holiday.
This was even after Beijing released its August industrial output and retail sales figures, which rose 5.6% and 0.5%, respectively, from a year earlier, confirming that economic recovery is under way.
Notwithstanding, retail investors and local institutions mopped up RM153.6mil and RM69.3mil respectively on Tuesday, pushing the FBM KLCI 1.3% higher to 1,531.3 points, the highest close in more than two weeks.
“Buying interest was probably focused on the banking sector as it is seen to be more stable in the long run, especially when the full-fledged moratorium will only be on a targeted basis starting on Oct 1.
“As such, it was no surprise that the Bursa Malaysia Finance Index increased by 2.1%, the largest gainer among other sectors, ” Adam told Bernama.
As Bursa reopened from the public holiday on Thursday, the foreign net selling slowed down to RM84.6mil.
The bourse’s foreign net outflow on Thursday was in conformity with other regional peers, namely South Korea, Taiwan, Thailand, Indonesia, and the Philippines after the US Federal Reserve said it would keep interest rates low in the coming years but failed to come up with further stimulus measures.On the corporate front, Adam said Top Glove Corp Bhd’s best ever quarterly net profit of RM1.29bil for the fourth quarter of financial year 2020 spurred some profit-taking activity which caused its share price to drop by 7.6%.
The FBM KLCI index followed suit to close 1.2% lower at 1,513.1 points on Thursday.
The momentum of foreign net selling further decelerated to RM63mil on Friday, tracking the positive data from the US labour market which showed that jobless claims dropped by 33,000 to 860,000 in the preceding week. — Bernama