Foreign investors sell RM71m of equity


Foreign investors sold a net RM71.4 million worth of equity last week, said MIDF Amanah Investment Bank Bhd in its Fund Flow Report for the week ended Oct 20, 2017.

The figure showed a 32% increase from RM54.2 million net sales recorded a week earlier, and was based on transactions in the open market.

The research house noted foreign funds disposed of equities for the fifth week running, the longest selling streak so far this year. Foreign selling was prominent everyday during the four-day trading week.

Tuesday recorded the highest disposal last week which amounted to RM29.1 million as investors shifted to the sidelines to seek cover before the Deepavali holiday last Wednesday.

The foreign outflow pushed the FTSE Bursa Malaysia KLCI (FBM KLCI) to continue its drop to end the week at 1,741 points, the lowest level since Apr 20, 2017.

“It seems the local market is showing a muted response while markets elsewhere are showing a bullish trend amid global developments such as US President Donald Trump’s tax reform progress, commendable earnings on Wall Street and upbeat Chinese economic data.

“We note that although the foreign selling in Malaysia was in conformity with its South-East Asian peers, the benchmark index in the respective peers tend to be more resilient compared to Malaysia,” MIDF said in the report.

The cumulative net foreign inflow for equities listed on Bursa Malaysia as of last week currently stood at RM9.4 billion.

Nevertheless, the cumulative amount still offsets approximately 30% of the total net outflows recorded in the past three years.

Foreign participation rebounded strongly as the foreign average daily trade value (ADTV) surged by a staggering 60% to reach above the RM1 billion level at RM1.27 billion, the third-highest weekly amount for the year.

The retail market was somewhat muted as the retail ADTV was slightly unchanged, only declining by 0.04% to RM995.3 million.

Hartalega Holdings Bhd registered the highest net money inflow of RM16.25 million last week. Its share price substantially outperformed against the FBM KLCI which lost 0.84% for the week.

Among the top 10 companies recording high net money inflow were Malaysia Airports Holding Bhd, IOI Corp Bhd and Kossan Rubber Industries Bhd.

Petronas Chemicals Group Bhd saw the largest net money outflow of RM23.03 million last week. Its share price also substantially outperformed the market benchmark with a 2.72% weekly gain.

Among the highest net money outflow were Hong Leong Bank Bhd, Tenaga Nasional Bhd and CIMB Group Holdings Bhd.