Foreign sell-off of RM244.5m for 4th week


Foreign investors continued selling Malaysian equities for the fourth consecutive week to the tune of RM244.5 million net.

MIDF Amanah Investment Bank Bhd in a research report yesterday noted the recent week saw the highest outflow in five weeks and nearly five times the amount withdrawn in the week before.

The report said international investors entered into Bursa Malaysia last Monday with RM65.2 million net long.

Last Tuesday, international investors offloaded a net of RM277.1 million, the biggest number in a day since early November.

“Investor sentiment was tempered last Tuesday on US President Donald Trump’s intention to expand trade tariffs on all remaining imports from China and Genting Malaysia Bhd’s legal dispute with Walt Disney Co and and Twenty-First Century Fox Inc,” MIDF’s report stated.

Foreign net selling level shrank to RM32.7 million last Wednesday before a net inflow following US Federal Reserve chair Jerome Powell’s speech.

“Last Thursday’s foreign buying was wiped off by last Friday’s sell-off worth RM84.8 million, as investors retreated to the sidelines ahead of the highly anticipated meeting between Beijing and Washington in Buenos Aires,” the report said.

The month of November posted a total foreign net outflow of RM718.9 million, half of the RM1.42 billion offloaded in the previous month.

Year-to-date outflows from Bursa Malaysia as of Nov 30, stood at RM10.67 billion.

“The average daily traded value for foreigners stood below RM1 billion for the third week in a row, a level not deemed active,” it said.

Among the stocks posting the highest net money inflows during the week ended Nov 30, 2018, were Malayan Banking Bhd at RM5.35 million, Genting Bhd (RM5.2 million) and Bursa Malaysia Bhd (RM4.51 million).

Stocks registering the highest net money outflows included Genting Malaysia Bhd at RM17.25 million, Top Glove Corp Bhd (RM10.58 million) and Nestlé (M) Bhd (RM7.55 million).

Meanwhile, the total trading value for government bonds (MGS/MII) increased to RM12.6 billion in the review week compared to RM11.1 billion in the previous week, according to Bloomberg’s data.

The total trading value of the 10 most active issues decreased to 65% during the week against the previous 69%.

The total trading value for corporate bonds (conventional and sukuk) increased to RM1.83 billion compared to RM1.66 billion in the earlier week.

The total trading value of the 10 most active issues increased to 50% versus the previous 45%.