Malaysia Equities - Foreign Fund Flowing Out?
MALAYSIA MONEY FLOW
• Foreign investors sold heavily Malaysian stocks last week. On net basis, foreign investors SOLD -RM718m compared with -RM449m the week before. Foreign investors have now been net sellers of Malaysian equity in three out of the last four weeks (see chart below).
• For the year until last Friday , the cumulative net inflow of foreign fund to Malaysian equity slid to +USD1.90b. It was still much higher compared with only +USD643m for the entire 2011. Since Jan 2010, cumulative net purchase of Bursa-listed shares by foreigners amounted to RM22.9b.
• Foreign investors were net sellers every trading day last week with the exception of that on Monday. They sold aggressively on Friday, with volume for the day exceeding RM2.3b. For the week, participation rate rose to the fourth highest this year. Foreign daily average gross trade (purchases + sales) spiked to RM989m last week, compared with RM602m the week before.
• Local retailers continued to be net sellers last week and remained a non-factor as far as the market is concerned as participation rate was very low. Daily average gross trade was only RM515m, the second lowest this year.
• Local institutions supported the market strongly last week, mopping up net RM753m compared with RM510m the week before. Daily average participation rate of local institutions surged to RM1.38b, the highest in fi ve weeks.