INTERNATIONAL investors sold RM638.6 mil net of local equities last week compared to RM326 mil in the preceding week, based on Bursa data, said MIDF Research.
The pace at which offshore funds were reducing their exposure in Asian equities quickened last week.
Based on the provisional aggregate data for the seven Asian exchanges (Thailand, Indonesia, Philippines), Korea, Taiwan, India and Malaysia) that MIDF Research tracks, foreign investors sold US$1.02 bil net last week.
MIDF Research analyst Adam Rahim said: “Despite the strong end to the week, foreign net selling accelerated on Bursa last week. This was for the ninth week running.”
Major equity markets worldwide remained in the green zone on optimism of an encouraging Covid-19 drug test which overshadowed a slew of weak economic data from the US.
Brent crude oil price plunged 10.8% to settle at US$28.08 per barrel last Friday, the lowest since 2002 as a historical OPEC+ production cut failed to counter the wave of gloomy demand forecasts and concerns that traders are quickly running out of room to store crude. Russia and Saudi Arabia on the other hand may be ready to enact deeper oil production cuts to stabilise prices.
The FBM KLCI advanced 3.7% for the week after settling at 1,403.74 points. In contrast, the ringgit depreciated by 1.4% against the greenback to reach 4.37 to US$1 during the week.
IHH Healthcare Bhd registered the highest net money inflow of RM6.17 mil last week. Its share price gained 2.55% for the week, underperforming the local bourse which had a 3.67% weekly gain.
MISC Bhd recorded the second highest net money inflow of RM4.17mmil. Its share price was 4.22% higher, outperforming the local bourse which had a 3.67% weekly gain.
Meanwhile, Gamuda Bhd saw the third highest net money inflow of RM2.24 mil. Its share price was 2.53% higher during the week, underperforming the local bourse.
On the other hand, Malaysia Airports Holdings Bhd saw the largest net money outflow of RM5.27 mil last week. Its stock price was 15.91% higher for the week, outperforming vis-à-vis the FBM KLCI which gained 3.67% during the week.
It is notable that net money outflow amidst advancing share price may indicate a sell on strength stance among some investors.
British American Tobacco Bhd recorded the second largest net money outflow of RM4.3 mil during the week under review. Its share price was 9.42% higher during the week, outperforming the market benchmark which had a 3.67% weekly gain.
Scientex Bhd registered the third largest net money outflow of RM3.94 mil in the review week. Its share price was 6.46% higher during the week under review, outperforming the local benchmark index. — April 20, 2020
