Friday 09 Jun 2023
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KUALA LUMPUR (Sept 15): In an apparent aversion to Malaysian equities, investors classified as foreign continued to sell Malaysian shares for the second week running, according to MIDF Research.

Syed Muhammed Kifni, MIDF Research head of equity, in his fund flow report Monday said foreign investors sold a net total of RM197.3 million for the week ended Sept 12.

Syed Muhammed said the foreign investors were net buyers last Monday.

“However, they turned sellers in the subsequent two days, with the net amount sold having exceeded RM100 million.

“They again briefly turned buyers on Thursday, albeit marginally, before executing their net sell orders totalling nearly RM173 million on Friday,” he said.

Syed Muhammed said that on cumulative basis, foreign investors remained net sellers of Malaysian stocks in 2014.

He said the net outflow as of last Friday had increased slightly to RM1.79 billion.

In 2013, Malaysia reported a net inflow of RM3 billion.

Syed Muhammed said foreign participation rate, however, eased last week.

He said the daily average gross purchase and sale declined to RM739 million from the billion level recorded in the prior week.

“Similarly, local participation rate is declining.

“In the retail market, the average daily gross purchase and sale fell further to RM896.3 million. Retailers remained cautious, having offloaded RM34 million, extending the sell down to 22 consecutive weeks,” he said.

Syed Muhammed said local institutions supported the market for the third week running, mopping up RM231.5 million last week.

“Nonetheless, participation increased slightly to RM2.41 billion, from RM2.35 billion the week before,” he said.

Commenting on the region, Syed Muhammed said the global funds inflow into Asian equity markets made an abrupt turn for the exit after previous four weeks of rising tide.

“Except for Thailand, India and the Philippines, all other markets under our radar recorded negative flow last week.

“Most notably, Korea registered its first weekly outflow since early May this year,” he said.


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