Foreign investors sold Malaysian equities last week

By FARA AISYAH / Graphic By TMR

FOREIGN investors rushed out of Malaysian equities for the third consecutive week with some RM327.4 million fled the local capital market.

In a MIDF Amanah Investment Bank Bhd weekly fund flow report yesterday, Malaysia recorded a total net foreign outflow of RM465.7 million to date this year.

“In comparison to the other three Asean markets we track, Malaysia has the smallest foreign net outflow on a year-to-date basis after Thailand and the Philippines,” said MIDF analyst Adam M Rahim.

“In terms of participation, the average daily traded value (ADTV) of foreign investors increased by 18% during the week to remain at a healthy level of above RM1 billion,” he noted.

He added that other investor groups such as retailers and local institutional funds experienced a drop in their weekly ADTV.

Kuala Lumpur Kepong Bhd registered the highest net money inflow of RM7.57 million last week, as its share price advanced 3.51%, outperforming the local bourse which had a 1.53% weekly gain.

MISC Bhd recorded the secondhighest net money inflow of RM6.3 million, as its share price was 6.24% higher in the week.

Genting Malaysia Bhd saw the third-highest net money inflow of RM6.07 million, with a 0.33% increase in the share price.

The other seven companies with top net money inflow last week include Press Metal Aluminium Holdings Bhd, My EG Services Bhd, Dialog Group Bhd, SP Setia Bhd, Top Glove Corp Bhd, Velesto Energy Bhd and Petronas Chemical Group Bhd.

Meanwhile, Hong Leong Bank Bhd saw the largest net money outflow of RM23.79 million last week, although its stock price was 0.63% higher for the week.

“It is notable that the net money outflow amid advancing share price may indicate a sell on strength stance among some investors,” Adam noted.

Public Bank Bhd recorded the second-largest net money outflow RM19.95 million during the week under review as its share price was 1.4% lower during the week.

CIMB Group Holdings Bhd registered the third-largest net money outflow of RM9.92 million in the week, with a 4.46% increase in share price, outperforming the local benchmark.

Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Malayan Banking Bhd, AirAsia Group Bhd, Genting Plantations Bhd and DiGi.

Com Bhd are among the counters with top net money outflow last week.

Meanwhile, foreign investors have mopped up US$1.02 billion (RM4.23 billion) net last week — in the seven Asian exchanges that MIDF Research’s tracks — compared to the US$4.11 billion offloaded in the previous week.

The countries include South Korea, Thailand, Indonesia, the Philippines, India, Taiwan and Malaysia.

“Fears from the novel coronavirus subsided last week, enough to bring foreign funds back to Asia,” Adam said.

“In emerging South-East Asian markets that we monitor, half recorded a foreign net outflow while the other half saw foreign net buying last week,” he added.