KUALA LUMPUR: Foreign investors stood firm to their selling positions for the seventh week, dumping RM464.1 million on Bursa Malaysia last week, the highest since October.
MIDF Research said the amount sold was also substantially higher than the RM314.3 million net recorded in the week before.
“Foreign investors sold Malaysian equity throughout the week. The quantum sold edged up on the days following Monday, due to oil price slump and US rate hike guidance.
“Foreign withdrawals peaked on Thursday at RM143.7m, about one third higher from the previous trading day. The concerns over oil situation were seen rising as the crude oil price fell about 5.1 per cent on Thursday.
“On Friday, the Brent settled at US$53.8 per barrel, the lowest levels for more than a year on worries of oversupply,” it said in its weekly fund flow report today.
MIDF Research said the heavy sell-off on Thursday coincided with the 0.31 per cent dip in the FBM KLCI. It reversed earlier losses to close higher at 1,670 points on Friday.
The firm said the rebound was led by window dressing and FBMKLCI index rebalancing activities with heavyweights Tenaga Nasional Bhd, Petronas Dagangan Bhd and Sime Darby Plantation Bhd emerged as top gainers.
Besides that, MIDF Research said the rebalancing activities also include the replacement of Telekom Malaysia Bhd and KLCC Property Holdings Bhd stapled real estate investment trusts (REITs) by Top Glove Corp Bhd and AMMB Holdings Bhd in the index.
The firm said this week, index wad expected to continue gaining supports on the likelihood of further window dressing activities ahead of the year-end.
For December, cumulative foreign net outflow amounted to RM858.7 million, a third consecutive month of attrition.
With one more week before 2018 ends, the cumulative net outflow thus far this year into shares listed on Bursa has expanded to RM11.5 billion.
MIDF Research said Malaysia remained as the nation with the second lowest year-to-date outflow amongst the seven Asian markets we monitor.
Meanwhile, it said foreign participation rate had gained momentum last week as the foreign average daily trade value (ADTV) surged strongly by 16.1 per cent to reach above the RM1 billion mark to settle at RM1.2 billion.
Gross trade of foreigners were above RM1 billion on four out of five trading days.
The retail market followed suit, advancing 17.6 per cent higher to settle below the RM1 billion mark at RM706.1 million.