Foreign investors extend selling streak to 28 days

PETALING JAYA: Foreign investors sold RM1.21 billion net last week, breaching the RM1 billion level and extending the selling streak to 28 days, just one day shy of the 29-day selling spree in early January to mid-February 2014.
“Ahead of the Aidilfitri break, foreign investors sold stocks listed on Bursa at a stronger pace. This also marks the seventh week of foreign attrition, matching the longest uninterrupted period of selling seen in 2017 from the week ended Sept 22 to Nov 3, 2017,” MIDF Research said in its fund flow report today.
Monday’s attrition hovered above the RM200 million level at RM216.5 million before rising to RM359 million net on Tuesday.
According to MIDF Research, investors were nervous on Tuesday amid the historic summit between the US and North Korea, which also dragged the FBM KLCI down by 0.66% to 1,764 points.
On Wednesday, selling activity returned to Monday’s level as global investors only sold RM230.4 million net amid dampened risk-on mood as investors awaited the Fed’s decision on interest rates.
On Thursday, foreign selling peaked at RM402.2 million net before the local bourse was closed for the Aidilfitri break on Friday.
MIDF Research noted that other Asian counterparts such as Korea, Taiwan, the Philippines and Thailand also experienced huge outflows that day, spurred by the Fed’s rate hike.
“Malaysia had the second largest weekly outflow among the four Asean markets we monitor, after Thailand. Nonetheless, the year-to-date outflow from Malaysia of RM4.23 billion net or US$1.06 billion net is still the lowest among its Asean peers namely Thailand, the Philippines and Indonesia,” it said.
It said that foreign participation was strong as the foreign average daily trade value (ADTV) increased by 24% to RM2.03 billion, logging its 11th straight week above the RM1 billion mark.
Meanwhile, the retail market and local funds saw buying activity for its fifth and seventh straight week, respectively.