Foreign selling of Malaysian stocks ramped up

KUALA LUMPUR: Foreign selling on Bursa Malaysia ramped up last week, doubling to RM498.4 million net over the preceding week, MIDF Research said.

July is set to be the month with the third lowest outflow so far this year with a month-to-date attrition of RM1.98 billion net as of last Friday.

On the regional front, MIDF Research said Malaysia still has the second lowest outflow among the four Asean markets it tracked despite the cumulative year-to-date outflow approaching the RM9 billion mark.

The firm said global investors were net sellers on every single day of the week, extending the daily selling streak to seven days.

“Foreign selling was the lowest on Monday at only RM28.1 million net, the smallest in a day since April 26 2018 as risk appetite was strong following the statement by Malaysian Investment Development Authority regarding 402 projects in the pipeline with a proposed investment of RM75 billion as at May 2018,” MIDF REsearch said in its weekly fund flow report.

The pace of foreign attrition later swelled on Tuesday and Wednesday to RM129.1 million net and RM244.2 million net respectively in spite of China’s move to expand fiscal stimulus.

Nevertheless, the firm said levels of foreign selling returned to a contained level of RM35.7 million net on Thursday.

Sentiment was rekindled as the agreement between the US and European Union to suspend trade tariffs while negotiating lower barriers to transatlantic commerce.

International investors sold slightly more on Friday to a tune of RM61.3 million net as attention has now turned back to China after the US plans to go ahead on trade talks with Mexico and Canada.

Market participation among foreign investors, retailers and local institutional funds stood strong.

The average daily traded value of foreign investors advanced the most for the week by 8.7 per cent to RM1.15 billion.

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