UNIMPRESSED WITH NAJIB’S CHINA DEALS, FOREIGN INVESTORS TURN ‘AGGRESSIVE’ SELLERS IN BURSA

KUALA LUMPUR: Foreign investors turned more aggressive in their trading of Malaysian stocks in the week ended Nov 4 at RM948.1mil – the fifth highest weekly outflow this year – said MIDF Equities Research.

It said on Monday net foreign selling dominated the entire trading week. The attrition turned ugly in the last two days of the week as the amount offloaded exceeded RM250mil per day.

“On Friday, the liquidation hit -RM348.6mil, the third highest in a day this year,” it said.

MIDF Research said the cumulative year-to-date net foreign purchase of Malaysian-listed shares was now only +RM1.06bil, down from a peak of +RM6.47bil in April.

It pointed out foreign investors had redeemed -RM5.41bil since April compared with -RM19.5bil and -RM6.9bil net outflow in 2015 and 2014 respectively.

“The market was heavily supported by local institutions last week. Retail participation remained depressingly weak.

“Retail average daily trading volume remained below RM500mil five weeks in a row now. We reiterate that the market has not seen the extent of retail withdrawal since early 2013,” it said.

DOWN IN EARLY TRADE
MEANWHILE, according to Bernama the ringgit opened lower against the US dollar on Monday as oil prices continued their downtrend in the global market on worries over higher US crude inventories, dealers said.


At 9am, the ringgit was quoted at 4.2040/2090 against the greenback from 4.1970/1020 on Friday.

At the opening, Brent crude was lower at US$45.88 a barrel.

He said Hillary Clinton’s chances of being elected US President has improved and this helped the US dollar.

“Clinton is likely to maintain a policy that prevents a strong dollar if she is elected,” he said.

The ringgit was traded mostly lower against a basket of major currencies.

The local note eased against the Singapore dollar to 3.0312/0359 from 3.0288/0333 on Friday and increased against the yen to 4.0431/0487 from 4.0759/0820 previously.

The ringgit was traded lower against the British pound at 5.2470/2549 from Friday’s 5.2370/2445 and slipped against the euro to 4.6669/6741 from 4.6583/6642 previously.

ANN/BERNAMA

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