foreign attrition

 
 

Foreign selling continues, but at reduced pace

PETALING JAYA: Foreign investors continued to sell for the fifth straight week last week, but at a slower pace of RM421 million, less than half of the amount sold in the preceding week.

According to MIDF Research, foreign net selling occurred from Monday till Thursday, stretching the daily selling spree to 16 days, the longest since the 37-day selling streak from early May till end of June 2018.

“Malaysia recorded a sizeable foreign net outflow on Monday of RM272.3 million, a level not seen since late November last year. Nonetheless, the magnitude of foreign attrition was not as high compared with North Asian peers such as South Korea and Taiwan which saw foreign net selling levels above RM400 million.

“The local bourse followed suit to dip by 0.9% on the same day to close at 1,664 points, the lowest close so far in 2019,” it said in its fund flow report today.

On Tuesday, the level of foreign net selling dipped below RM100 million to RM60.9 million following the unexpected rise in January’s US retail sales overnight. However, the amount withdrawn by offshore investors more than doubled to RM125.6 million the next day.

“Another series of tapering outflows happened again on Thursday as only RM13.4 million net was sold. The rebound in US business equipment orders to reach the highest in six months helped outweigh the fall in China’s industrial output to a 17-year low in the first two months of the year,” said MIDF Research.

On Friday, global funds bought RM51.3 million net, snapping the 16-day selling streak on Bursa as China pledged to stick to its targeted stimulus with tax cuts beginning next month.

In the first two weeks of March 2019, foreign funds have sold RM1.48 billion net, bringing the year-to-date amount to RM1.27 billion.

“On the regional front, Malaysia is still the nation with the only foreign net outflow among the four Asean markets we track. Indonesia still retains the lead with a foreign net inflow of US$686.9 million or above RM2.5 billion ahead of its presidential and general election in April 2019.”


Foreign selling enters third week

PETALING JAYA: Foreign investors extended their selling on Bursa Malaysia into the third uninterrupted week last week, recording RM52.3 million net of local equities sold.

In its fund flow report, MIDF Research said the amount sold last week is less than half the amount withdrawn in the preceding week.

“Monday saw a decent amount of foreign net inflow worth RM34 million, coinciding with the FBM KLCI’s largest daily gain during the week of 0.25%. Support on Monday came from stalwarts in the banking sector such as CIMB Group, Malayan Banking and Public Bank in addition to plantation stocks,” it said.

Markets were closed on Tuesday in conjunction with the Maulidur Rasul holiday. As markets reopened on Wednesday, international funds withdrew RM151.7 million net of local equities, the biggest foreign attrition during the week.

“This follows the sharp 6.4% drop in Brent crude oil price overnight as concerns of a global oversupply continue looming. The massive outflow was in conformity with other regional peers, namely South Korea and Thailand,” said MIDF Research.

However, foreign investors shifted back into buying mode on Thursday, accumulating RM51.5 million net while the local bourse was little changed, only gaining 0.25 points.

The research house noted that Malaysia fared better than the regional peers mentioned above as they still experienced outflows.

On Friday, foreign inflows were seen again but at a measurable level of RM14 million net as uncertainty in global trade continues to haunt the Asian region.

MIDF Research expects November to be another month of outflows with the month-to-date outflow as of last Friday, amounting to RM474.1 million net.

“While foreign investors have sold RM10.42 billion of local equities on a year-to-date basis which offsets last year’s inflow of RM10.33 billion, Malaysia still has the second lowest foreign net outflow among the four Asean markets we monitor,” it added.


Foreign funds net sellers on Bursa

PETALING JAYA: Foreign investors turned net sellers last week, albeit at a marginal pace, after three uninterrupted weeks of foreign net inflows, according to MIDF Research.

“Based on preliminary data from Bursa which excluded off-market deals, international funds sold RM69 million net of local equities last week, the second smallest weekly foreign net outflow recorded so far in 2018. Nevertheless, Malaysia saw the lowest level of foreign attrition last week amongst the four Asean markets we monitor,” the research house said in a note today.

MIDF Research said there was a decent foreign net inflow of RM19.7 million on Monday but was later cancelled off by a small net outflow worth RM36.2 million on Tuesday.

“Foreign funds were on a roll on Wednesday and Thursday as they mopped up local stocks worth more than RM70 million on both days. Interestingly, foreign investors in other regional peers namely the Philippines, Thailand, and Indonesia were reducing their exposure during the same period.”

“However, offshore funds were back in selling mode on Friday but at a heightened level of RM209.3 million net, the highest in 16 trading days. The local bourse followed suit to decline by 0.72% to 1,777 points on the same day, the lowest close since late July 2018.”

Year-to-date, the total foreign net outflow from Malaysia as of last Friday stood at RM8.6 billion, offsetting about 86% of last year’s RM10.3 billion foreign net inflow.

Participation of foreign investors dipped as its weekly average daily traded value ended 8.2% below the RM1 billion mark for the first time in 13 weeks.

“Meanwhile, participation in the retail market and local institutional funds remained healthy above RM800 million and RM2 billion, respectively.”


Foreign funds sell RM69mil of Malaysian shares

bursa

KUALA LUMPUR: After three uninterrupted weeks of foreign net inflows into stocks listed on Bursa, international investors turned into selling mode albeit at a marginal pace, according to MIDF Research.   “Based on preliminary data from Bursa which excluded off market deals, international funds sold RM69.0mil net of local equities last week, the second smallest weekly foreign net outflow recorded so far in 2018.   “Nevertheless, Malaysia saw the lowest level of foreign attrition last week amongst the four Asean markets we monitor,” MIDF said in its weekly fund flowRead More


Foreign selling doubled to RM498m last week

PETALING JAYA: The amount sold by offshore funds last week reached RM498.4 million net, twice the amount disposed in the week before, ramping up the momentum of foreign selling on the bourse.

“Global investors were net sellers on every single day of the week, extending the daily selling streak to seven days. Foreign selling was the lowest on Monday at only RM28.1 million net, the smallest in a day since April 26 as risk appetite was strong following the statement by Malaysian Investment Development Authority regarding 402 projects in the pipeline with a proposed investment of RM75 billion as at May 2018,” MIDF Research said in its fund flow report today.

It added that the pace of foreign attrition later swelled on Tuesday and Wednesday to RM129.1 million net and RM244.2 million net, respectively in spite of China’s move to expand fiscal stimulus. Nevertheless, levels of foreign selling returned to a contained level of RM35.7 million net on Thursday.

Sentiment was rekindled as the agreement between the US and EU to suspend trade tariffs while negotiating lower barriers to transatlantic commerce. International investors sold slightly more on Friday to a tune of RM61.3 million net.

“July is set to be the month with the third lowest outflow so far this year with a month-to-date attrition worth RM1.98 billion net as of last Friday. On the regional front, Malaysia still has the second lowest outflow amongst the four Asean markets we track despite the cumulative year-to-date outflow approaching the RM9 billion mark,” MIDF said.

Market participation among foreign investors, retailers and local institutional funds stood strong.

The average daily traded value (ADTV) of foreign investors advanced by 8.7% to RM1.15 billion.


Net foreign selling doubled to RM498m in week ended July 27

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KUALA LUMPUR: The momentum of foreign selling on Bursa jumped  in the week ended July 27 and net selling doubled to RM498.4mil compared with RM247.1mil a week earlier, says MIDF Research. It said on Monday global investors were net sellers on every single day of the week, extending the daily selling streak to seven days. Foreign selling was the lowest on Monday at only -RM28.1mil net, the smallest in a day since April 26 as risk appetite was strong following the statement by Malaysian Investment Development Authority (MIDA) regarding 402Read More


Net foreign outflows from Bursa Malaysia narrow

PETALING JAYA: Net outflows from Bursa Malaysia continued to narrow for the third straight week, with the amount sold by global funds last week receding to RM531.8 million net.

“This is the lowest weekly foreign attrition recorded since the week ended May 11,” MIDF Research said in its fund flow report today.

Foreign net selling levels remained above RM100 million for the first three days with Tuesday recording the highest during the week at RM177.4 million net.

Despite the US threats to impose tariffs on an additional US$200 billion (RM810 billion) worth of Chinese imports, the market sentiment in Asia improved on Wednesday, buoyed by overnight gains on Wall Street following PepsiCo’s solid quarterly results.This then capped the amount of foreign outflows that day which totalled RM112.9 million net.

It was notable that foreign net outflows declined below RM100 million on Thursday and Friday, to the tune of RM52 million and RM57 million, respectively. The slowdown in foreign net selling was mainly due to the greenlight given by the government for smaller scale LRT3 projects and the possibility for a trade negotiation to resume between Washington and Beijing. The FBM KLCI followed suit to close above 1,700 points for the first time since June 20 on Thursday and settled above that level for the week.

“Amongst the four Asean markets we monitor … nevertheless, Malaysia still has the second lowest foreign net outflow in Asean worth RM8.06 billion or US$2.01 billion after the Philippines on a year-to-date basis,” MIDF Research said.

Foreign participation recovered last week as the foreign average daily traded value (ADTV) increased by 41% to hit RM1.33 billion which is a healthy level. The participation in the retail market and local institutional funds also picked up steam as their ADTVs advanced above RM1 billion and RM2 billion, respectively.


Bursa records 10th consecutive week of foreign attrition

PETALING JAYA: Foreign funds continued its selling streak last week at a net US$704.3 million (RM2.85 billion) compared with the US$705.4 million net seen the week before.

“Foreign investors continued to pare their holdings in stocks listed on Bursa for the 10th consecutive week. This is the longest weekly selling streak recorded since the 20-week selling spree from May to September 2015,” MIDF Research said in its fund flow report today.

Foreign investors were net sellers on every single day of the week. It was notable that the magnitude of foreign net selling from Monday to Thursday was rather contained. During this period of modest selling activity, the highest daily outflow of US$100.4 million occurred on Tuesday, coinciding with FBM KLCI’s lowest closing point of 1,680 points within the same period.

Foreign attrition later surged on Friday to a tune of RM393.6 million net, the highest in a day since June 21. The huge attrition was in conformity with other regional peers namely South Korea and the Philippines. It was no doubt that the main cause for Friday’s major selloff was due to the US-China trade dispute whereby the US officially activated a 25% tariff on US$34 billion of Chinese goods followed by an immediate tit-for-tat measure by the Chinese government.

The cumulative year-to-date outflow from Malaysia as of last Friday stands at RM7.53 billion net, offsetting 75% of last year’s total foreign inflow of RM10.33 billion net. Nevertheless, Malaysia still has the second lowest outflow amongst the four Asean markets after the Philippines on a year-to-date basis.

Foreign participation took a breather last week as foreigners retreated to the sidelines amidst the intensified trade tensions. Foreign average daily traded value (ADTV) substantially declined by 26% to hit below RM1 billion. The retail market meanwhile remained healthy although its ADTV was little changed at RM807.7 million.


Analysts: Foreign selling on Bursa Malaysia slowing down

KUCHING: Bursa Malaysia Bhd (Bursa Malaysia) continued to experience its ninth week of foreign attrition, analysts observed in a recent fund flow report, mirroring markets elsewhere in Asia. However, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) pointed out that the ninth week of foreign attrition was at a slower pace. According […]


Foreign attrition on Bursa enters ninth week

PETALING JAYA: Bursa Malaysia saw its ninth week of foreign attrition last week but at a slower pace, as the amount disposed by foreign investors retreated below RM1 billion to RM705.4 million net.

According to MIDF Research, offshore investors were net sellers from Monday to Thursday with none of the days recording attrition above RM300 million net.

“Monday had the highest net outflow during the week of RM291.4 million as the escalating trade dispute between the US and China stoked risk aversion,” it said in its fund flow report today.

Despite foreign selling activity slowing down to a tune of RM206.1 million net later on Thursday, the FBM KLCI dropped further to 1,665.68 points, the lowest close since January 2017 following the slump in Wall Street overnight.

The slump in Wall Street was spurred by President Donald Trump’s economic adviser Larry Kudlow’s comments on the US’ hard line on trade in spite of Trump’s softer stance.

The tide turned on Friday when foreign investors mopped up RM259.4 million net, snapping a 37-day long episode of foreign attrition amidst window dressing activities.

The FBM KLCI followed suit to snap its four-day losing streak by closing 1.55% higher that day, the biggest daily gain so far in 2018.

“We note that Friday’s foreign net inflow is in conformity with other regional peers we track namely the Philippines, Thailand and Indonesia,” said MIDF Research.

For the month of June, the amount of net outflows from Malaysia reached RM4.93 billion, bringing the 1H18 cumulative outflow in 2018 to RM6.82 billion net, offsetting more than half of last year’s total net inflow of RM10.33 billion.

“Nonetheless, Malaysia still has the second lowest outflow among the four Asean markets we monitor after the Philippines on a year-to-date basis,” it said.

Participation level of foreigners, retailers and local institutions experienced a weekly dip but activity levels are still deemed healthy as the average daily trade value is still above RM800 million for retailers, RM2 billion for local institutions and RM1 billion for foreign investors.