FOREIGN FUNDS FLEE MALAYSIAN BOURSE AMID CONFIDENCE, 1MDB ISSUES

KUALA LUMPUR – Foreign investors pulled out of Bursa Malaysia in week ended Oct 14 in line with other regional markets as the ringgit weakened further to US$/RM4.19, according to MIDF Equities Research.

The research house said on Monday foreign outflow was RM227.4mil compared with an inflow of RM118.8mil the week prior.

It said foreign investors were net sellers on Monday (-RM25.2mil), Wednesday (-RM108mil), Thursday (-RM46mil) and Friday (-RM100.2mil). They were net buyers only on Tuesday (+RM12.4mil).

Foreigners’ participation rate fell drastically from RM1042.8mil the week earlier to RM783.2mil last week.

“Year-to-date cumulative net foreign inflow contracted to +RM2.194bil compared to +RM2,422.1mil the week before. In retrospect, foreigners had offloaded -RM19.5bil in 2015 and -RM6.9bil in 2014,” it said.

MIDF Research said ocal institutions turned net buyers during the week, loading up RM309.5mil worth of shares. That occurred after they sold off –RM30.9mil in the preceding week.

Retailers continue to sell stocks for the third successive week last week by offloading RM82.1mil. In the week earlier, they sold RM87.9mil.

MIDF Research said this week, all eyes will be on the tabulation of Budget 2017 slated for Friday.

– ANN

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