PETALING JAYA – A bomb hoax at Bursa Malaysia building led to RM266.2 million of foreign outflow last Friday, according to MIDF Research.
Over the past week, foreign funds offloaded RM240.8 million net in equities compared with an inflow of RM733.4 million the week prior.
“Foreign investors were net sellers on Tuesday (- RM100.4 million), Wednesday (-RM31.8 million) and Friday (- RM266.2 million). The selldown on Friday was the steepest in a single day since June 16,” the research house noted.
However, foreign funds were net buyers on Monday (RM50 million) and Thursday (RM107.6 million).
“The buying on Thursday was largely due to the Organisation of the Petroleum Exporting Countries’ decision to cut output, which bodes well for oil prices and some of Malaysia’s upstream oil and gas players,” MIDF Research said.
Foreigners’ participation rate declined for the second successive week to RM885 million from RM921.36 million the week before.
In September, foreign investors sold off RM207.2 million against a net buying of RM1.58 billion in August.
Year-to-date cumulative net foreign inflow contracted slightly to RM2.33 billion compared with RM2.54 billion, the highest in almost five months.
Foreigners offloaded RM19.5 billion in 2015, and RM6.9 billion in 2014.
Meanwhile, MIDF Research said local institutions turned net buyers last week, loading up RM244.6 million worth of shares against a selloff of RM738.7 million in the preceding week.
“Local funds were buyers on Tuesday (RM80.7 million), Wednesday (RM39.4 million) and Friday (RM231.7 million). The buying on last Friday was the highest in a day since June 16. On the other hand, they sold stocks on Monday (-RM34.7 million) and Thursday (-RM72.5 million),” it noted.
MIDF Research said retailers took profits last week by selling RM3.8 million worth of shares after being net buyers two weeks in a row before that.
Among the three categories of investors, only local institutional investors saw an increase in participation rate, which rose to the highest in six weeks at RM2.27 billion.