Foreign funds withdrawal hit a steep RM1.1b, says MIDF

International investors were net sellers on every single day last week


Foreign funds dumped a net RM1.05 billion worth of Malaysian equities last week, posting the largest weekly foreign net outflow in 16 weeks.

In its research note issued yesterday, MIDF Amanah Investment Bank Bhd said the offshore funds fled Bursa Malaysia at a rather quick pace.

“International investors were net sellers on every single day of the week. Last Monday’s foreign net selling of RM227.2 million was of no surprise as investors reacted towards last Sunday’s announcement of the termination of MMC Corp Bhd-Gamuda Bhd’s joint-venture (JV) underground work contract for the MRT2 (Mass Rapid Transit Line 2),” the report read.

Although the level of foreign net selling tapered below RM200 million last Tuesday and Wednesday, investors sold RM317.9 million net last Thursday.

“It is the highest in a month after Wall Street suffered its biggest loss in eight months overnight as technology companies remained a drag combined with worries of increasing interest rates,” it noted.

Tailing last Thursday’s chaos, foreign net selling was almost halved to RM173.8 million last Friday with a rebound of the local bourse by 1.3% after media reported that US President Donald Trump could meet his Chinese counterpart, Xi Jinping, during the next Group of 20 summit.

MIDF said the total foreign net outflow from Malaysia as of last Friday stood higher RM9.7 billion, offsetting approximately more than 90% of last year’s RM10.3 billion foreign net inflow.

“Nevertheless, the country saw the second-lowest level of foreign attrition among the four Asean markets we monitor,” the research house noted.

Tenaga Nasional Bhd posted the highest net money inflow of RM11.02 million last week, followed by Top Glove Corp Bhd (RM7.18 million), Public Bank Bhd (RM6.95 million), Dialog Group Bhd (RM6.06 million), Sime Darby Bhd (RM6 million), Kuala Lumpur Kepong Bhd (RM4.66 million), Petronas Dagangan Bhd (RM4.3 million), AirAsia Group Bhd (RM3.97 million), CIMB Group Holdings Bhd (RM3.01 million) and Hong Leong Bank Bhd (RM2.93 million).

Meanwhile, Gamuda registered the largest net money outflow of RM17.83 million, followed by Petronas Chemicals Group Bhd (RM5.31 million), Fraser & Neave Holdings Bhd (RM3.31 milion), Telekom Malaysia Bhd (RM3.17 million), Malayan Banking Bhd (RM2.96 million), Serba Dinamik Holdings Bhd (RM2.78 million), Petronas Gas Bhd (RM2.67 million), Genting Bhd (RM2.01 million), Malaysian Resources Corp Bhd (RM1.7 million) and PPB Group Bhd (RM1.66 million).