KUALA LUMPUR: Foreign funds disposed of net RM80.1mil of Malaysian equities in the week ended Nov 1, up from net RM127.3mil a week ago as the outflow of foreign capital continued, says MIDF Equities Research.
It said on Monday the outflow had continued for the fourth consecutive week and for the four week, the foreign funds had disposed of net RM1.1bil of Malaysian equities.
“At the moment, the outflow from Bursa Malaysia is still moderate and gradual. A major outflow has been averted because prices have been supported by local funds,” said the research house.
MIDF Research said even after the outflow last week, the overhang of foreign portfolio capital which entered the Malaysian equity market in 2013 remained high at net RM7.6bil, down from RM8.2bil two weeks ago.
“It is equivalent to US$2.70bil based on weighted average exchange rates at the point of entry. For money which had flowed in since January 2011, we estimate the cumulative overhang to remain at RM23.2bil or US$7.8bil,” it said.
The research house pointed out that except on Wednesday, foreign funds were net sellers throughout last week. They had been net sellers in 17 out of the last 19 trading days on Bursa.
MIDF Research said local institutions were net buyers last week, mopping up net RM548.7mil. Participation rate surged to net RM1.87bil, the highest in six weeks.
“Retailers, however still lack conviction in the market, selling net RM68.6m. They had been net sellers in eight out of the last 10 weeks. Participation rate rose to RM1.04b, the first time it exceeded the RM1bil mark in five weeks,” it said.