Jul 14, 2014

Malaysia - Foreign funds sold US$81.11 million of Malaysian equities

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Foreign funds remained net sellers on Bursa Malaysia in the week ended July 11 when it disposed of 257.70 million ringgit (US$81.11 million) of equities, says MIDF Equities Research.

It said on Monday this was the first weekly deficit in 12 week and the amount disposed off was the highest since March 2014, which was in contrast with the neighbouring markets.

“On cumulative basis, foreign investors remained net sellers of Malaysian stocks in 2014, and the net outflow as of last Friday had increased to net -1.81 billion ringgit ($569,700 million). In 2013, Malaysia reported a net inflow of + 3.0 billion ringgit ($944,300 million),” it said.

MIDF Research said foreign investors sold every day last week, except on Thursday. The sell-down peaked on Friday when an amount of 146 million ringgit ($45.96 million) was offloaded, the highest since March 14, 2014.

“However, we are not raising the alarm bell yet as the daily outflow has not exceeded 200 million ringgit ($62.95 million), which is when the intensity of the sell down begins to be felt, in our opinion,” it said.

The research house noted that foreign participation rose significantly as the average daily foreign gross purchase and sale on Bursa Malaysia increased to 942 million ringgit ($296.50 million) from 767 million ringgit ($241.42 million) the week before.

It said the retail market remained in a bearish mode, with investors offloading -137 million ringgit ($43.12 million) last week. Participation rate also increased to 905 million ringgit ($284.86 million), the highest in 11 weeks.

“We note that retailers bought on Friday, as opportunistic buying emerges at current price level.

“Local institutions supported the market last week, mopping up 395 million ringgit ($124.33 million). Participation rate remained elevated for the third week running at 2.5 billion ringgit ($786,900 million),” it said.

The Star

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