KUALA LUMPUR: International funds continued to withdraw shares listed on Bursa Malaysia for the fifth uninterrupted week albeit at a slower pace, MIDF Research said.
Based on data from Bursa, the research firm said foreign funds sold RM80.3 million net of local equities last week.
This was one third of the amount disposed in the preceding week, it added.
“Foreign funds started the week by selling off RM83.1 million net on Monday despite the 90-day ceasefire over the trade war between Beijing and Washington.
“This bucked the trend of other regional markets such as South Korea and Taiwan which experienced massive inflows following the latest international trade development,” it said in a note.
However, MIDF Research said offshore investors turned net buyers as they bought RM76.1 million and RM69.9 million on Tuesday and Wednesday respectively amidst the advance in Brent crude oil price to US$62 per barrel ahead of the OPEC meeting on Thursday.
This coincided with the ringgit’s 0.45 per cent appreciation to its highest level in more than a month of RMR4.1465 against the US Dollar, it added.
Following the arrest of Huawei’s Chief Financial Officer, MIDF Research said Asian markets including Malaysia skidded and prompted investors to retreat to the sidelines.
As such, Malaysia saw a foreign net outflow of RM59.9 million on Thursday, it said.
MIDF Research said sentiment on Friday remained sour with foreign investors selling RM83.1 million net on Bursa as the OPEC meeting did not result in any production cuts. Nonetheless, OPEC and Russia later agreed to reduce oil production by removing 1.2 million barrels per day.
“Last week’s foreign net outflow brings the year-to-date outflow from Malaysia to RM10.74b or US$2.66 billion.
“Although this amount offsets last year’s net inflow, it is not as high compared to the other two Asean peers we track namely, Thailand and Indonesia which have seen year-to-date outflows larger than US$3 billion,” it said.
MIDF Research said the participation rate among the various group of investors saw a decline across the board.
“The average daily traded value of foreign investors registered the largest weekly drop of 45.5 per cent after declining to RM1.11 billion but is still deemed healthy.”