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Monday, October 27, 2014

Foreign funds continue to sell Malaysian equities: MIDF Research


KUALA LUMPUR: MIDF Equities Research says foreign funds were net sellers of Malaysian equities in the open market in the week ended Oct 24, with net selling of -RM351.3m compared with -RM545mil sold the week before.
The research house said on Monday the fund flow showed Malaysia was again bucking regional trend.
“While foreign funds started to nibble again in Taiwan, South Korea, India and Indonesia, and putting a brake on their selldown of Thailand and Philippines stocks, the selldown of Malaysian equity continued at a sustained but moderate pace,” it said.
MIDF Research said foreign investors were net sellers on Monday and Tuesday and bought a marginal RM19mil when the market reopened on Thursday.
While that was the first purchase in eight days, hopes for a reversal in sentiment was short-lived, as selling continued on Friday. 
“On cumulative basis, foreign investors had sold -RM4.2bil net of Malaysian stocks in 2014 as of last Friday. This already reversed the +RM3bil net inflow in 2013,” it said.
MIDF Research said foreign participation stayed “elevated” (more than RM1bil) for the third week running. Daily average gross purchase and sale rose slightly to RM1.08bil from RM1.05bil.
“As expected, local investors stayed on the sidelines last week. Participation rate of local institutions dropped to RM1.84bil, the first time it fell below the RM2bil threshold in a long 18 weeks. Local funds absorbed +RM537mil last week, reflecting market support. 
“Retail investors turned significantly bearish, offloading -RM186mil, the second highest selldown in a week this year. However, participation rate was moderate with average daily gross sales and purchases at only RM765mil, among the lowest this year,” it said.

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