Offshore investors reduce exposure on Bursa for fourth consecutive week

30 October 2018
Source: Borneo Post (KK), Malaysia


KUALA LUMPUR: Offshore investors reduced their exposure in stocks listed on Bursa Malaysia for the fourth uninterrupted week, analysts observed in the latest fund flow report.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), based on preliminary data from Bursa which excluded off market deals, foreign funds disposed RM310.1 million net of local equities last week. 

"This was more than double the amount withdrawn in the preceding week," MIDF Research said. 

"The week started off with a foreign net inflow on Monday worth RM34 million as China announced steps to ease funding strains of private companies to restore confidence within the economy. 

"Monday's inflow was then reversed by the highest foreign net ouftlow during the week worth RM138.7 million on Tuesday. 

"This was in conformity with other regional peers, namely Korea and Taiwan which both experienced a heavy selloff of more than US$ 400 million net each." 

MIDF Research noted that the remaining days appeared mixed, with the foreign net attrition tapering to RM52.4 million on Wednesday before reaching higher to RM101 million on Thursday. 

The research arm further noted that there was an exodus of funds from global markets following a rout in US technology stocks overnight that inflicted the largest decline in a day on Wall Street in seven years, erasing all year-to-date gains. 

"Friday's atmosphere was calm back again as foreign selling declined to RM52 million in the wake of Wall Street's recover overnight."

MIDF Research also highlighted that with just three trading days left in October, the month has seen a total outflow worth RM1.56 billion, bringing the year-to-date outflow to reach RM10.1 billion. 

While this offset approximately 98 per cent of last year's net inflow, Malaysia nevertheless still remained as the country with the second lowest outflow amongst the four Asean markets the research arm monitored. 

On participation amongst investors in the retail market, MIDF Research said that it remained resilient as the weekly average daily traded value (ADTV) was 5.4 per cent higher and remained above RM800 million.

"Meanwhile the weekly ADTV for local institutional funds and foreign investors took a dip below their healthy levels of RM2 billion and RM1 billion respectively." 

Overall, Dialog Group Bhd registered the highest net money inflow of RM5.52 million last week, followed by Genting Malaysia Bhd with the second highest net money inflow of RM5.28 million. British American Tobacco Bhd saw the third highest net money inflow of RM4.73 million. 

On the other hand, Hong Leong Bank Bhd saw the largest net money outflow of RM18.55 million last week.

Petronas Chemicals Group Bhd recorded the second largest net money outflow RM17.62 million during the week under review while MY EG Services Bhd registered the third largest net money outflow of RM12.17 million.