Foreign selling on Bursa Malaysia slows down to RM326mil

KUALA LUMPUR: Foreign funds selling on Bursa Malaysia slows down to RM326mil in the week ended April 10, the eight week of selling, according to MIDF Research.

“Based on data from Bursa, international investors sold RM326.0mil net of local equities last week compared to the RM486.0mil net disposed in the preceding week,” MIDF said in its weekly fund flow report.

MIDF said Malaysia remained as the nation with the third smallest foreign net outflow on a year-to-date basis in comparison to the six Asian peers it monitors.

“The year-to-date foreign outflow from Malaysia came to RM8.45bil,” it said.

International funds sold RM66.5mil net on Monday, a level deemed contained as new cases of Covid-19 appeared to slow in the U.S and Europe including France and Italy.

“Foreign investors made a modest return to Bursa on Tuesday by snapping up RM2.40mil net of local equities as investors digested the additional RM10bil assistance package targeted at SMEs. The foreign net buying on Tuesday lifted the local bourse by 2.1% to a three-week high of 1,369.9 points,” MIDF said.

The research house noted that the foreign net selling peaked during the week on Wednesday at RM136.9mil and the level of foreign net selling nevertheless shrank to RM36.3mil on Thursday.

Friday then saw a foreign net outflow of RM88.7mil, coinciding with the announcement of the movement control order being extended to April 28.

In terms of participation, MIDF said the average daily traded value (ADTV) of foreign investors declined 23% to RM975mil while retail and institutional investors saw a weekly increase in ADTV by 15% and 5% respectively

Source: TheStar