Foreign selling of local equities persisted at slower pace of RM358m last week, says MIDF

KUALA LUMPUR (July 1): Foreign funds continued to exit Bursa Malaysia for the second consecutive week, albeit with a lower outflow of RM357.7 million last week, from RM441.1 million the prior week.

In its weekly fund flow on Monday (July 1), MIDF Research said the funds recorded a net outflow of RM164.3 million last Monday (June 24), RM76.3 million last Tuesday, and RM265.7 million last Thursday.

“However, they net bought RM18.0 million last Wednesday and RM130.7 million last Friday.

“The sectors that recorded the highest net foreign inflows last week were industrial products & services (RM104.4 million), technology (RM67.6 million), and property (RM34.7 million), while the sectors that registered the highest net foreign outflows were financial services (RM206.9 million), consumer products & services (RM131.4 million), and construction (RM110.1 million),” it said.

MIDF said local institutions maintained their support for the local bourse, marking a second consecutive week of net buying totalling RM354.9 million.

“Similarly, local retailers also continued their trend of net buying for the second consecutive week, amounting to RM2.7 million.

“In terms of participation, there were declines in average daily trading volume (ADTV) among all investor classes last week,” it said.

The research house said foreign investors recorded the largest decline of 34.4% while local retailers recorded a decline of 19.5% and local institutions saw a decline of 15.1%.

Commenting on the international situation, MIDF said most of the major markets took a slight dip last week, with 12 out of 20 indices that it tracks in the red.

“The top gainers were the Philippines’ PSEi (4.12%), the Jakarta Composite Index (2.67%) and the Nikkei 225 (2.56%).

“The top decliners last week were the Ho Chi Minh VSE (2.86%), CAC 40 (1.96%) and the Hang Seng Index (1.72%),” it said.