Foreign selling narrows to RM72m, says MIDF

By LYDIA NATHAN

FOREIGN selling of local equities on Bursa Malaysia narrowed to RM72 million, the lowest weekly net outflow since January.

In his weekly fund flow report yesterday, MIDF Research analyst Adam M Rahim said the exchange started the week with a foreign net outflow of RM95.2 million, while the local bourse was little changed at 1,622 points.

“The foreign net outflow occurred despite gains seen in the KL Construction Index following the reinstatement of the Bandar Malaysia project announced in the preceding week.

“Last Tuesday, international investors turned net buyers on for the first time in nine trading days after purchasing RM38.6 million net before advancing to RM105.9 million net last Wednesday,” he said.

According to Adam, the surge of foreign funds last Wednesday was partly attributable to the overnight record highs posted on Wall Street.

“As such, the FTSE Bursa Malaysia KLCI followed suit to close 0.7% higher at 1,638 points. However, the two-day buying streak came to an end last Thursday as foreign investors sold RM113.7 million net, as US equities slip from their record high,” he said.

Last Friday saw foreign funds selling off equities on Bursa Malaysia, but at a minimal level of RM7.6 million, which was partially buoyed by the agreement of China to purchase more palm oil from Malaysia.

Adam said international investors have so far disposed of RM1.21 billion this month, bringing the year-to-date foreign net outflow to RM2.56 billion.

“Among the four Asean markets we monitor, Malaysia retains its position as the nation with the largest foreign net outflow,” he said.

Adam added that among the seven Asian markets that MIDF tracks, India has the largest foreign net inflow worth more than RM35 billion as the general election is still ongoing until May.

Meanwhile, Public Bank Bhd — which registered RM23.33 million last week — was among the stocks that posted the highest net money inflow.

This was followed by Malaysia Airports Holdings Bhd and Genting Malaysia Bhd at RM13.36 million and RM8.23 million respectively.

Stocks that registered the highest net money outflow were Petronas Chemicals Group Bhd at RM15.6 million, followed by IHH Healthcare Bhd (RM4.77 million) and Sime Darby Bhd (RM4.25 million).