FOREIGN net selling reached the 25th consecutive week for Bursa Malaysia, and outflow accelerated to RM937.5 mil net last week, said MIDF Research.
This is compared to RM226.1 mil in the preceding week. It also marks RM19.9 bil net sold on Bursa by foreign investors to date.
MIDF said Malaysia recorded the second highest foreign fund outflow among the four Southeast Asian markets tracked by the research house.
At the opening of the market last week, foreign investors had disposed of RM174.1 mil net of local equities, in spite of the Malaysia Leading Index (LI) rebounding 6% y/y in May.
“This was also the highest recorded LI since March due to the reopening of economic activities after the movement control order,” said MIDF.
The research house noted that the foreign net outflow increased to RM250.9 mil and RM336.9 mil last Tuesday and Wednesday.
MIDF said this was likely due to negative sentiments from fears of a new global Covid-19 wave and the deterioration of the US-China relationship, which might impede the recovery progress of the global economy.
Also noted as a possible contributing factor was the uncertain domestic political scene.
However, foreign net outflow subsided on Thursday to RM90.3 mil, likely buoyed by positive sentiments on another potential US stimulus package, better than expected US non-farm payrolls of 1.76 million additional jobs and higher China exports in July, according to MIDF.
Friday saw the lowest net outflow at RM85.3 mil, coinciding with Malaysia’s Industrial Production Index recording a slower decline of 0.4% y/y in June, which was supported by the recovery in manufacturing output.
MIDF said retail investors saw a weekly increase of 50.4% in average daily traded value (ADTV) to RM8.4 bil, while foreign investors experienced the least weekly increase in ADTV by 8.6% to reach RM1.7 bil, above the healthy level of RM1 bil.
MIDF added that Kossan Rubber Industries Bhd, Petronas Gas Bhd, and Bursa Malaysia Bhd were the top three net money inflow sources last week, recording RM6.76 mil, RM6.47 mil, and RM4.62 mil respectively.
The top three net money outflows were Time Dotcom Bhd, Inari Amertron Bhd, and MyEG Services Bhd, with outflows of RM7.29 mil, RM5.21 mil, and RM4.33 mil respectively. – Aug 10, 2020
