OFFSHORE investors upped the ante in selling activity last week. Based on data from Bursa, international investors took out a whopping RM1.26 bil net of local equities last week, the largest weekly foreign net outflow in 88 weeks, according to MIDF Research.
“Based on the provisional aggregate data for the seven Asian exchanges (Thailand, Indonesia, Philippines, Korea, Taiwan, India and Malaysia) that we track, investors classified as foreign dumped US$8.44 bil net last week compared to the US$1.52 bil net disposed of the week before,” said MIDF Research analyst Adam M Rahim.
The FBM KLCI remained in the red, declining 3.2% for the week to settle at 1,482.6 points. This is the largest weekly drop since June 2018. Similarly, the ringgit depreciated by 0.6% against the greenback to reach RM4.215 during the week.
The bloodbath extended throughout major global equity markets last week amidst the widening spread of the Covid-19 outbreak outside China.
Brent crude oil recorded a drastic weekly drop of 13.6% after settling at US$50.52 per barrel, the biggest weekly drop since 2008 which pushed oil prices to under US$50 per barrel. The recent drop in oil price gives rise to a possibility that the Organisation of the Petroleum Exporting Countries (Opec) and its allies could be nearing an agreement to mitigate further price drops before their scheduled meeting on March 5.
In Asia, fear of the spreading Covid-19 outbreak sparked a massive sell-off in the region’s equity markets.
Among the beneficiaries were Top Glove Corporation Bhd, which saw the highest net money inflow of RM9.82 mil. Its share price was 6.62% higher during the week, outperforming the local bourse which was 3.17% lower.
Sime Darby Bhd registered the second highest net money inflow of RM5.26 mil last week where its share price dropped 4.76%.
Meanwhile, IHH Healthcare Bhd recorded the third highest net money inflow of RM4.38 mil. Its share price was 0.70% lower over the one week period. Nonetheless, it is notable that net money inflow amidst retreating share price may indicate a buy on weakness stance among some investors.
On the other hand, Public Bank Bhd registered the largest net money outflow of RM20.64 mil in the week under review. The counter was 5.73% lower, underperforming the local benchmark which was 3.17% lower for the week.
Malaysia Airports Holdings Bhd saw the second largest net money outflow of RM15.15 mil last week. Its stock price was 2.37% lower for the week.
Yinson Holdings Bhd recorded the third largest net money outflow of RM10.71 mil. Its share price was 0.56% higher during the week. It is notable that the net money outflow amidst advancing share price may indicate a sell on strength stance among some investors. – March 2, 2020
