KUALA LUMPUR, Oct 15 – Offshore funds fled Bursa at a rather heightened pace last week, according to MIDF Research.
“Based on preliminary data from Bursa which excluded off market deals, foreign funds withdrew RM1.05bil net of local equities last week, the largest weekly foreign net outflow in 16 weeks.
“Nevertheless, Malaysia saw the second lowest level of foreign attrition last week amongst the four Asean markets we monitor,” MIDF said in its weekly fund flow report.
MIDF said international investors were net sellers on every single day of the week. Monday’s foreign net selling of RM227.2mil was of no surprise as investors reacted towards Sunday’s announcement of the termination of the MMC-Gamuda’s underground work contract for MRT2.
However, Thursday saw chaos as international investors sold RM327.9mil net, the highest in a month after Wall Street suffered its biggest loss in eight months overnight as technology companies remained a drag combined with worries of increasing interest rates.
Foreign net selling then was almost halved to RM173.8mil on Friday in tandem with the rebound of the local of bourse by 1.3% following news that President Trump could meet Xi Jinping during the next G20 summit.
“The total foreign net outflow from Malaysia as of last Friday stood higher RM9.7bil, offsetting approximately more than 90% of last year’s RM10.3bil foreign net inflow.
“Meanwhile, Malaysia still retains its position as the nation with the second lowest year-to-date foreign net outflow amongst the four Asean markets we track,” MIDF said.
Participation amongst foreign investors, local institutional funds and investors in the retail market were strong last week as their weekly average daily traded value were higher than 20% compared to the preceding week.