KUALA LUMPUR – Foreign funds were net sellers on Bursa Malaysia in the week ended Nov 11 at RM800.4mil, according to MIDF Equities Research.
It said on Monday Malaysian equity has been subjected to foreign money attrition since early May.
“The heaviest of the selldown appears to be in the past and the foreign money currently
flowing out is, at most, residual. Hence, the heavy tide out of Asian equity last week was more contained on Bursa,” it said.
MIDF Research said the net amount sold by foreigners on Bursa of -RM800.4mil (US$184.1mil) last week was lower than the -RM948.1mil offloaded in the previous week.
“Still, it was the seventh highest weekly outflow this year, estimated based on transactions in the open market which excluded off market deals,” it said.
Foreign investors were actually net buyers on Monday and Tuesday, albeit moderately. This was in contrast to that in the TIPs markets where foreign selling was reported for the two-day total. The buying reversed abruptly on Wednesday and continued for the rest of the week.
“On Friday, the attrition turned ugly as the amount offloaded amounted to -RM690.9mil. It was the highest in a day so far this year,” it said.
MIDF Research said despite the attrition last week, foreign investors remained net purchaser cumulative year-to-date.
“But the amount has shrunk to only RM261mil from a peak of +RM6.47bil in April, meaning -RM6.21bil had been redeemed since April. It was -RM19.5bil and -RM6.9bil net outflow in 2015 and 2014 respectively,” it said.
The research house said the market was well supported by local institutions last week with net buying of RM800.5mil.
“Retail investors came to life last week. Retail average daily trading volume (ADTV) shot up 37% to RM643mil. It was the highest in 12 weeks and the first time it exceeded the RM500mil mark in six weeks. However, the buying on dips conviction was weak as the buying and selling amount was almost equal last week,” it said.
Over last week, retail invetors were net sellers at just RM100,000.