PETALING JAYA: The momentum of foreign net selling activity on Bursa Malaysia picked up last week, extending the selling streak to the sixth week, according to MIDF Research.
Foreign funds sold RM275.7 million net of local equities last week, almost four times more than what was seen in the week before.
The research house said Monday recorded a foreign net outflow of RM96.3 million net as investors waited for a slew of data from the US, Europe and China which may shed some light on the prospects of global economic growth.
“Foreign net selling peaked during the week on Tuesday at RM102.9 million net as Malaysia and other regional markets were closed on Wednesday. Sentiment was also partially affected by the lower-than-expected Purchasing Managers’ Index (PMI) in China.”
“As markets reopened on Thursday, foreign investors continued to take out local equities at a tune of RM88.8 million net. The trend of foreign net outflow was in conformity with other regional peers namely, Thailand and Indonesia.”
However, MIDF said international funds made their way back to Bursa on Friday as they snapped up RM12.2 million net of local equities, bringing the five-day selling streak to an end.
“Performance of the local bourse on that day was partly influenced by Malaysia’s April trade surplus of RM14.4 billion, the largest gain since October 2018.”
For the month of April, Malaysia recorded a foreign net outflow of RM1.49 billion, marking the third consecutive month of foreign net selling. This brings the foreign outflow from Malaysia for the first four months to RM2.76 billion compared with a foreign net inflow of RM3.71 billion recorded during the same period last year.
“Among the four Asean markets we monitor, Malaysia retains its position as the nation with the largest foreign net outfl ow amongst the four Asean markets we monitor.
“Meanwhile, amongst the seven Asian markets we track, India is the nation with the largest foreign net inflow nearing US$10 billion as the general election is still ongoing until May 23.”
Source: The Sun Daily