Foreign sell-off of local stocks falls to RM80m


Foreign investors continued to withdraw from Bursa Malaysia for the fifth consecutive week last week with an estimated net outflows of RM80.3 million, according to MIDF Research.

The figure is about a third of net outflows in the week prior, the research firm’s weekly fund flow report stated yesterday.

Data showed the trading week started off with net sales of RM83.1 million by foreign funds last Monday despite a truce reached between the US and China on trade matters.

“This bucked the trend on regional markets such as South Korea and Taiwan, which experienced massive inflows following the latest international trade development,” MIDF noted.

Offshore investors became net buyers last Tuesday and Wednesday, going net-long by RM76.1 million and RM69.9 million respectively, as the benchmark Brent crude oil contract price hit US$62 (RM260.40) a barrel ahead of the OPEC meeting last Thursday.

“This coincided with the ringgit’s 0.45% appreciation to its highest level in more than a month of US dollar/RM4.1465,” it said.

The arrest of Huawei Technologies Co Ltd’s CFO caused outflows from Bursa Malaysia as investors sold a net RM59.9 million last Thursday, while sentiments last Friday stayed sour with investors selling shares worth net RM83.1 million as the OPEC meeting did not result in any production cuts.

The net outflows last week brings the year-to-date outflow from Bursa Malaysia to RM10.74 billion or US$2.66 billion.

Money flowed into counters like Genting Malaysia Bhd, Tenaga Nasional Bhd and Hong Leong Financial Group Bhd, and out of counters like Petronas Chemicals Group Bhd, Public Bank Bhd and Top Glove Corp Bhd, the report stated.