KUALA LUMPUR, 6 April 2020 – The pace of foreign net selling on Bursa continued to slow down last week, according to MIDF Amanah Investment Bank Bhd Research.
“Based on data from Bursa, international investors sold RM486.0 million net of local equities last week compared to the RM631.9 million net disposed in the preceding week.”
MIDF Amanah Investment Bank Bhd Research
In its weekly fund flow report, MIDF said in comparison to its other six Asian peers that the house monitor, Malaysia remained as the nation with the third smallest foreign net outflow on a year-to-date basis.
“The year-to-date foreign outflow from Malaysia came to RM8.12 billion.”
Monday recorded a foreign net outflow of RM108.5 million in tandem with the FBM KLCI’s 1.1% drop and the descent of Brent crude oil price to its lowest point in 18 years.
MIDF noted that on Tuesday as offshore investors mopped up RM113.4 million net of local equities, snapping the 28-day foreign net selling streak.
“However, the foreign net inflow was short-lived as foreign investors dumped RM253.4 million on Wednesday, the highest foreign net outflow during the week,” MIDF said, adding that investors’ nerves were frayed as Asian manufacturing activity data including Malaysia showed a slowdown last month.
The momentum of foreign net selling decelerated to RM96.8 million net on Thursday following President Trump’s expectation that Saudi Arabia and Russia to announce a deal on an oil production cut.
Friday saw a foreign net outflow of RM140.7 million as FTSE Russell kept Malaysia on the watchlist for bond index exclusion. Meanwhile, Malaysia’s exports grew by almost 12% in February 2020, the strongest in 16 months.
In terms of participation, MIDF said the average daily traded value (ADTV) of foreign investors increased the most by 5.5% to RM1.27 billion, which is still at a healthy level.
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