Monday, June 25, 2018
Foreign funds outflow highest at RM1.89b since May 18
“Based on preliminary data from Bursa which excluded off market deals, the net amount offloaded by foreign investors last week stood above the RM1bil level for the fifth time this year at RM1.89bil net,” the research house said in its weekly fund flow report.
As of June 22, offshore investors have been withdrawing Malaysian equities for 33 consecutive days since May 2, surpassing the 29-day selling streak recorded in early January to mid-February 2014.
MIDF said Global funds sold the most on Tuesday at RM555mil net, coinciding with the FBM KLCI’s largest drop in 13 trading days at 1.61% as the U.S China trade friction intensified.
Selling activity thereafter tapered below the RM400mil level on Wednesday and Thursday at RM384.0mil and RM264.9mil net respectively.
In spite of the gradual decline in attrition, the FBM KLCI moved in an opposite direction to slide further to the lowest close since February 2017 at 1,692 points on Thursday and marked its 9th straight day of losses as Telekom Malaysia Bhd
The FBM KLCI inched higher by 0.11% on Friday amidst window dressing activities before second quarter ends.
However, foreign selling was seen at RM444mil on the same day as the trade friction between Beijing and Washington continued to be the biggest worry amongst investors.
“We reckon that these external developments would continue to affect the pace of flows into and out of Malaysia,” MIDF said.
Foreign participation remained active despite the 23% decline in foreign average daily trade value (ADTV) as the value stood above RM1bil for the 12th week running.
MIDF said although the retail ADTV was below RM1bil for the second week at RM865mil, retailers have been entering the market for the past six consecutive weeks.
Posted by wikisabah at 2:53:00 PM