Foreign investors disposed of RM298m stocks last week

PETALING JAYA: Foreign investors consolidated their position on Bursa last week following the four-day weekend break, with the largest weekly outflow this year at RM298 million.

"The heaviest foreign selling was recorded on Friday with net disposals surging to RM228.4 million as fund managers rationalised position as the second quarter came to a close," MIDF Research said in its fund flow report yesterday.

Note that in June, foreign investors acquired RM344.4 million net of local equity, the lowest in a month this year. However, foreigners had built a solid position on Bursa in 1H17, buying six months in a row.

"Cumulative foreign buying on Bursa surged substantially to RM10.2 billion or an estimated US$2.3 billion in the first half, the highest among Southeast Asian peers. The next biggest recipient in Southeast Asia was the Jakarta bourse, recording a surplus of US$1.3 billion," it said.

It added that foreign participation was healthy last week despite the short trading week, with foreign average daily trade value (ADTV) increasing by 26% for the week, from RM989.6 million to RM1.24 billion.

Foreign trading was active on Wednesday and Friday as the trading value exceeded RM1 billion for both days. There was no trading on Monday and Tuesday due to the Hari Raya holidays.

Meanwhile, the lack of local participation was noticeable last week, said MIDF Research.

"The retail market resumed its sluggish pace. Retail ADTV was slightly unchanged at RM627.5 million, being under the RM1 billion mark for the fifth week running," it said.