INVESTOR FLIGHT DEEPENS: FOREIGN FUNDS FLOW ON BURSA TURNS NEGATIVE AGAIN

PETALING JAYA – The Malaysian equity foreign fund flow turned negative again last week as the net amount sold by foreigners on Bursa Malaysia was RM481.7 million compared with the prior week’s net purchase of RM44 million.

“The positive net foreign fund flow of the prior week, its first since before the US election in November, was regrettably short-lived,” said MIDF Research in its fund flow report yesterday.

Nevertheless, it said the negative foreign fund flow last week was equally prevalent in many other Asian equity markets.

Throughout the whole week on a net daily basis, foreign investors have been selling off their investments.

The highest attrition was on Friday at RM163.4 million and the lowest was on Tuesday at RM18.3 million.

On a cumulative year-to-date, MIDF said the amount of net selling by foreigners this year has expanded further to RM3 billion.

“However, compared with last year, the outflow amount is still relatively low vis-à-vis RM19.5 billion net outflow in 2015.”

Retail investors gross participation rate continued to expand to RM392.6 million from RM378.5 million in the prior week. This is in-line with the higher buying on dips conviction, which surged to RM84.9 million from RM14.1 million during the prior week.

On the other hand, the institutional investors gross participation rate fell to RM1.67 billion from RM1.93 billion in the prior week.

– Sundaily

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