Foreign funds net sellers of Malaysian equities for second week

PETALING JAYA: Foreign investors were the net sellers on Bursa Malaysia for the second week running, offloading RM762.9 million worth of equities last week, according to MIDF Research.
However, it said the intensity of the selldown was not as severe as seen last year due to low foreign liquidity overhang in the local market.
The selldown the week before was RM613.7 million.
“Foreign funds were net sellers throughout the week but the amount did not exceed RM200 million during any of the days. Foreigners have been net sellers for seven consecutive trading days now,” MIDF Research said in a note yesterday.
It noted that the selling was heavy on Monday when an amount of RM186 million was offloaded and the rate of attrition was relatively unchanged on Tuesday but receded on Wednesday.
“Selling picked up pace again on Thursday and by Friday, the offloaded amount had surged to RM190.3 million, the highest for the week,” it said.
Year-to-date, foreigners have sold a net of RM1.38 billion in equities, which has reduced the estimated amount of foreign liquidity overhang in the market to only RM7 billion, based on MIDF Research’s estimate.
Foreign participation rate (average daily volume) rose last week but the amount remained below the RM1 billion mark at RM990 million. In comparison, participation averaged RM1.05 billion per day last year.
Meanwhile, MIDF Research said local investors supported the local bourse last week, with local institutions and retailers absorbing RM665.1 million and RM97.8 million, respectively.
“In 2015, local institutions absorbed a whopping RM21.2 billion, and the market support seems to be continuing in the first two weeks of the year. The participation rate of local institutions remained elevated at RM2.03 billion,” it added.
Except for the last week of 2015, MIDF Research said retailers have been conspicuously nibbling in the market in the last six weeks. Retail participation was healthy last week at RM905 million.