KUALA LUMPUR (Sept 23): Foreign funds disposed of RM249.3 million of local equity on Bursa Malaysia last week, after having bought RM192.1 million the prior week, according to MIDF Amanah Investment Bank Bhd Research.
In his weekly fund flow report today, MIDF Research's Adam M Rahim said Bursa began the week on the right foot after a long weekend as international funds snapped up RM56.8 million net on Tuesday, lifting the local bourse 0.2% higher to settle at 1,604.3 points, the highest close in five trading days.
He said the entrance of foreign funds into stocks listed on Bursa bucked the trend as other markets experienced foreign net outflows following the drone attack on Saudi Arabia's oil facilities.
"However, international funds started to gradually reduce their exposure from Wednesday until the week ended.
"Wednesday saw a foreign net outflow of RM40.5 million net as the anticipation of the Federal Reserve's decision on interest rates outweighed the positivity from Saudi Arabia's partial restoration of its oil production," he said.
Adam said the pace of foreign net outflow more than doubled to hit RM97.6 million net on Thursday following the second rate cut this year by the Federal Reserve.
He said worries were partially caused by the US policy makers who were divided on the need for further easing following Wednesday's rate cut.
"The local stock market barometer followed suit to decline the most during the week by 0.3%.
"Foreign net selling activity inched higher on Friday to RM169.9 million despite the series of stimulus measures by other major central banks during the week.
"For the month of September, international investors have thus far sold RM335.8 million net, the lowest amongst its ASEAN peers," he said.
Adam said on a year-to-date basis, international funds have taken out RM7.68 billion worth of local equities from Bursa.
He said in terms of participation, foreign investors experienced the largest weekly gain of 55.8% in the average daily traded value (ADTV) to remain above the RM1.0 billion mark at RM1.79 billion.