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.
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