KUALA LUMPUR: Foreign net selling of Malaysia equities slowed down last week to RM350.8mil from RM559mil in the preceding week, according to MIDF Research.
Cumulatively for the month of September, foreign investors sold RM1.43bil
“Retailers are net sellers of RM307.3mil worth of equities last week, with local institutions at RM657.5mil net during the same period,” MIDF said in its weekly fund flow report.
“Last week saw a mass exodus of retailers as they became net sellers at the level unseen since May 2013.
“Based on our analysis with data dated since 2011, on a weekly basis, last week was top 15 of weekly net outflow since February 2011. This potentially marks the beginning of the end for a liquidity-driven market that we are experiencing now,” the research house said.
Foreign investors sold RM256.03mil net of local equities on Monday, with retailers and local institutions as net sellers and buyers at RM1.71mil and RM257.73mil respectively.
MIDF noted that the largest outflow was on Monday at RM256.03mil and smallest outflow was on Friday at RM125.55mil.
“So far in 2020, foreign investors net selling has amounted to RM21.78bil worth of equities on Bursa. Local players, institutions are net buyers at RM10.25bil and retailers at RM11.16bil,” it said.
In comparison to the other three South-East Asian markets that MIDF tracked last week; the Philippines recorded the least foreign net outflow while Malaysia experienced the biggest outflow compared with others.
In terms of participation, the retail investors recorded a weekly decrease of 32.47% in average daily trade value (ADTV) while the foreign investor experienced a decrease of ADTV of 51.50%.
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